Question

Preparing budget figures for different levels of activity within a range, under flexible budgeting is _____________.

• A. Formula method
• B. Budget cost allowance method
• C. Multi activity method
• D. None of the above

Answer 1

The correct option is C Multi activity method

According to this method, a flexible budget is prepared for different levels of activity showing different activity or capacity levels in horizontal columns and budgeted figures against different activity or capacity levels in the vertical columns.