Management uses a(n) ______ budget to establish the standard overhead rate.Multiple choice question.flexiblefixedmaster
Question
Management uses a(n) ______ budget to establish the standard overhead rate.Multiple choice question.flexiblefixedmaster
Solution
The correct answer is "flexible". Management uses a flexible budget to establish the standard overhead rate. This is because a flexible budget adjusts to changes in actual revenue levels, allowing for more accurate overhead rate calculations.
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