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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › flexed budget
which one of the following statements are true?
1 The flexed budget is prepared at the same level of activity as actual output
2 The difference between the flexed budget profit and the actual profit shows the effect on profit of operating at a level of activity that differs from the expected level
1 only
Tutorial note: The effect on profit of operating at a different level of activity to the one budgeted is the difference between the flexed budget profit and the originally budgeted profit (not the actual profit).
why is 2 wrong? arent we suppose to compare the flexed budget with the actual budget?
Can you tell me where this question is from?
acca study hub
I do not like this question at all
It’s very ambiguous
I think it’s a mistake