Cost Flexible Budget

which of the following statements about flexible budgets is not true

all of the above statements are true: the flexible budget is valid within the firm's relevant range of activity; a flexible budget is based on a simplified view of a firm's overhead cost structure; a flexible budget is not based on one particular level of activity

which of the following statements about activity-based flexible budgeting are true

all of the above: it uses several cost drivers; costs that may appear fixed with respect to a single volume-based cost driver may be variable with respect to other appropriate cost drivers; it can also be used as the basis for a flexible budget for planning and cost management purposes

which of the following is not a step in the preparation of a flexible budget

determining actual selling price per unit

activity levels in the flexible budget are based on output measures

false

the activity-based budget provides a less accurate benchmark against which to compare actual costs

false

the variable-overhead efficiency variance measures the cost of variable overhead cost driver

false

when preparing a flexible budget, ______ remain the same regardless of the output levels as long as the company is producing within the relevant range

fixed costs

in a multi-product firm, activity levels for a flexible budget are based on

input measures

a flexible budget is a budget that is valid within the firm's relevant range of activity

true

a flexible budget is not based on only one level of activity

true

in a conventional flexible budget only one cost driver is used while several cost drivers are used in an activity-based flexible budget

true

the flexible overhead budget is the cost manager's primary tool for the control of manufacturing-overhead costs under traditional cost management techniques

true

variable-overhead cost and the activity measure for the flexible budget should move together as overall productive activity changes

true