Homework Answers
Solution: Flexible budget
Comparing actual results to a budget based on the actual activity of the period is possible with the use of a flexible budget.
Explanation:
1) Flexible budget is a form of an income statement that is adjustable to any level of activity.
2) Flexible budget is also a statement detailing the revenues and costs for the different level of activity for a period.
3) Flexible Budget, the budget will be changed in proportion to the volume of activity changed.
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