Question

15. A flexible budget is actually a series of budgets for varying levels of activity. A. True. B. False. 16. Which of the following budgets is used most frequently for administrative functions. A. Zero-based budget. B. Flexible budget. C. Static budget. D. Capital expenditures budget. 17. The operating budget brings together the projection of all profit-making phases of a company A. True. B. False. 18. A method of budgeting which maintains a twelve-month projection into the future is called: A. Annual budgeting. B. Continuous budgeting. C. Dynamic budgeting. D. Both A and B above. 19. Which of the following budgets would not be included in an operating budget? A. Sales budget. B. Factory overhead cost budget. C. Selling/Administrative expenses budget. D. Capital expenditures budget. 20. Computers are seldom used in the budget process, although computers can reduce the cost of budget preparation. A. True. B. False. 21. Standard costs serve as a device for measuring: A. Nonfinancial performance. B. Volume. C. Effectiveness. D. Efficiency

Answer 1

15)

The given statement is True.

Supporting explanations:

The flexible budget is prepared at various activity levels of volume like at 2,000 units, 3,000 units, 4,000 units etc. where variable costs per unit is multiplied at each activity level to show the variable costs at each volume and fixed costs are also shown which are same at each activity volume.

Thus, the flexible budget shows the total costs including both variable and fixed costs at each activity level of volume.

Therefore, the given statement is True.