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9 March, 14:07

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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  1. 9 March, 14:16
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    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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