Examlex
The third state of digestion involves:
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity levels, making it more useful for controlling costs and planning.
Static Budget
A fixed budget that does not change or adjust to variations in sales volumes or business activity levels throughout the period.
Activity Levels
Various measures of operations or production quantity, such as units produced or hours worked, which can impact costs and managerial decisions.
Overhead Cost
Expenses that are not directly tied to production activities, such as rent, utilities, and general office expenses.
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