Which of the following statements is false? Multiple Choice
O The variance analysis cycle includes analyzing differences between actual results and what should have occurred according to the budget
O The management by exception approach enables managers to focus on the most important variances while bypassing trivial discrepancies.
O A flexible budget is an estimate of what revenues and costs should have been given the actual level of activity for the period.
O A planning budget is prepared before the period begins and it is based on the actual level of activity incurred during the period.
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