In developing a flexible budget within a relevant range of activity,

a. only fixed costs are included.
b. it is necessary to prepare a budget at 1,000 unit increments.
c. variable and fixed costs are combined and are reported as a total cost.
d. it is necessary to relate variable cost data to the activity index chosen.

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wincess1087 wincess1087

27-04-2020
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In developing a flexible budget within a relevant range of activity,

a. only fixed costs are included.
b. it is necessary to prepare a budget at 1,000 unit increments.
c. variable and fixed costs are combined and are reported as a total cost.
d. it is necessary to relate variable cost data to the activity index chosen.

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Parrain Parrain · Answer 1 · 2020-04-28T07:50:21+02:00

Parrain Parrain

28-04-2020

Answer: d. it is necessary to relate variable cost data to the activity index chosen

Explanation:

The activity index shows how various activities have an impact on the cost of production.

When developing a flexible budget within a relevant range of activity, ome must relate variable cost data to the activity index chosen to ensure that it is indeed variable.

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