An Activity-Based Flexible Budget Differs from a Conventional Flexible Budget

question 60

Multiple Choice

An activity-based flexible budget differs from a conventional flexible budget in that:

• A)the flexible budget is the better basis to use for cost management purposes.
• B)the activity-based costing approach is more accurate because costs that were categorized as fixed on the conventional flexible budget become variable when multiple cost drivers are used.
• C)the conventional flexible budget approach is more accurate because costs are classified as variable with respect to a single, appropriately chosen cost driver.
• D)the conventional budget approach provides a richer view of cost behaviour.
• E)the conventional approach is the most widely used by management accountants.

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Definitions:

Federal Government

The national government of a federal country, such as the United States, which has specific powers delegated to it by the constitution.

Environmental Movement

A social and political effort to protect natural resources and ecosystems from degradation due to human activity, gaining significant traction in the late 20th century.

1968

a year marked by significant global upheaval, including protests, revolutions, and notable historical events affecting politics, civil rights, and the Vietnam War.

1980

The year marked by significant global and national events, including the inauguration of Ronald Reagan as President of the United States and the eruption of Mount St. Helens.