In an activity flexible budget, the variable cost component typically corresponds to

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 1CMA: When compared to static budgets, flexible budgets: a. offer managers a more realistic comparison of...
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  1. In an activity flexible budget, the variable cost component typically corresponds to
       
    those resources that vary with direct labor hours.
       
    resources acquired as needed.
       
    resources acquired in advance of usage.
       
    resources that do not change as the activity output changes.
       
    None of these.
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