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18 April, 08:43

In a flexible budget, when the activity declines, the total variable cost also declines.

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  1. 18 April, 08:55
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    That statement is false.

    Variable cost is the type of cost that incurred everytime a product is being produced. In flexible budget, the total budget will be adjusted to the amount of changes in volume or activity, which make the variable cost pretty much the same even though the activity is declined
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