The following statements have been made about a flexed budget:(1) It allows managers to plan for alternative contingencies(2) It makes no differentiation between fixed and variable costs(3) It assists in identifying limiting factors(4) It provides useful control informationWhich of the above statements are correct?
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A A method of budgeting where an attempt is made to make each cost heading asclose to zero as possible. B A method of budgeting whereby all activities are re-evaluated each time a budget isformulated. C A method of budgeting which recognises the difference between the behaviour offixed and variable ...
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9 .The following statements have been made about different types of budgets:Statement 1An annual budget that can be broken down into monthly budgets, which differ depending onthe number of working days in each month, is called a flexible budget.Statement 2An annual budget set before the start of a year based on estimated sales and productionvolumes is called a fixed budget.Which of the above statements is/are true?
A Statement 1 True;Statement 2 False B Statement 1 False;Statement 2 True C Statement 1 False;Statement 2 False D Statement 1 True;Statement 2 True
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