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Hi
Could you please explain what a flexed budget is..?
And is it likely budgets can appear on the exam?
Thanks.
Flexed budget is fixed budger, but revised for actual activity.
If company had budget for production of 1,000 units and had all details in that budget on different costs (materials, labour etc), then for comparison with actual results (say, 900 units) it would be useful to adjust initial fixed budget for new activity level (900 units). It will result in more accurate performance measurement.
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