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ValentinkaMS [17]
3 years ago
11

When using a flexible budget, a decrease in activity within the relevant range: Multiple Choice decreases variable cost per unit

. increases variable cost per unit. decreases total costs. increases total costs.
Business
1 answer:
hodyreva [135]3 years ago
7 0

Answer:

The correct answer is letter "D": decreases total costs.

Explanation:

Flexible budgets are those designed to tolerate a margin of variance in costs during the operations of a business. Typically, those changes arise in different points during a given period and are to be addressed as soon as they are noticed. In such a scenario, flexible budgets help businesses to update the budget computed at the beginning of operations by comparing the current activity with the expected activity of the firm.

<em>If activity decreases, a flexible budget will face a decrease in the total costs of the operations.</em>

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