Question

Which of the following elements are used in calculating revenue in a flexible budget? A) budgeted selling price and actual quantity of outputB) actual selling price and budgeted quantity of outputC) budgeted selling price and budgeted quantity of outputD) actual selling price and actual quantity of output

Answer 1

The correct answer is A) budgeted selling price and actual quantity of output.

Step-by-step explanation:

We call a flexible budget to a budget that is adjusted or flexed with some changes in activity or volume. It is noticeable that a flexible budget tends to be more sophisticated and useful than a statistic budget. And to calculate revenue in a flexible budget, it is necessary a budgeted selling price and actual quantity of output.