A Flexible Budget Summarizes Revenues and Costs for Various Levels

question 177

True/False

A flexible budget summarizes revenues and costs for various levels of sales volume within a relevant range.

---

Definitions:

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or services.

Direct Materials

Refers to the raw materials that are directly incorporated into a finished product during the manufacturing process.

Overhead Costs

Expenses related to the day-to-day running of a business that are not directly linked to a specific product or service, such as rent, utilities, and administrative expenses.

Overhead Costs

Expenses related to the day-to-day running of a business that can't be directly linked to any specific product or service.