Accounting · Budgetary Control
Which of the following is a potential disadvantage of using a flexible budget?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It is only suitable for manufacturing companies
- 2It does not allow for a direct comparison of actual and budgeted costs
- 3It can be more complex and time-consuming to prepare than a fixed budget✓
- 4It ignores changes in activity levels
Correct answer
It can be more complex and time-consuming to prepare than a fixed budget
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