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John Moffat.
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › budgeting
which of the following are advantage of flexible budget?
1. useful for control purposes as it is based on the original budgeted level of activity.
2. facilitates control by recognising different cost behaviour pattern.
3. budgeted and actual figure reflect the same level of activity.
A. 3 only
B. 2 and 3 only
C.1 and 2 only
D. 1, 2 and 3
sir please help me out on this question
i am pretty much perplexed ….
Have you watched my free lectures on budgeting and on variances?
For control purposes we flex the original budget for the actual level of activity and then compare the actual figures with the flexed budget figures.