The budget which calculates the expected revenues and expected costs, based on the actual output quantity is named as __________?
Correct answer: A. flexible budget
- A. flexible budget
- B. fixed budget
- C. variable budget
- D. multiplied budgetPrice Comparisons
Explanation
A flexible budget adjusts expected revenues and costs to the actual level of output, unlike a fixed budget, which remains based on one planned activity level. Therefore, the output-based budget is the flexible budget.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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