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<p>(a) Changes with volume of production.</p> <p>(b) Changes with variable expenses</p> <p>(c) Changes in Direct material.</p>
Changes with volume of production
Flexible Budget changes with the volume of production
Answer is option A
Option A) Change with Volume of Production
(a) Changes with volume of production.
FLEXIBLE BUDGET is based upon different levels of activity. It is a very useful tool for comparing actual costs experienced to the cost allowable for the activity level achieved, i.e. it is dynamic in nature as compared to static. A series of budgets can be readily developed to fit any activity level. Flexible budgeting distinguishes between fixed and variable cost, thereby allowing for a budget that can be automatically adjusted to the level of activity actually attained.
A
ANSWER :--- IS A
