True or false: A flexible budget reporting sales volumes at three different levels will have the same fixed costs.True false question.TrueFalse

Answering the Question

1. Understanding Fixed Costs: Fixed costs remain constant regardless of the level of production or sales volume. These costs do not change with fluctuations in sales volume.

2. Flexible Budget Definition: A flexible budget adjusts costs based on the actual levels of activity or sales volume. While variable costs will change with different levels of sales, fixed costs should remain the same across different levels in a flexible budget.

3. Conclusion: Since fixed costs do not vary with changes in sales volume, a flexible budget reporting sales volumes at three different levels will indeed have the same fixed costs.

Final Answer

True - A flexible budget reporting sales volumes at three different levels will have the same fixed costs.