The accountant for Harper Company is preparing a flexible budget. The activity index is machine...

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Accounting

The accountant for Harper Company is preparing a flexible budget. The activity index is machine hours, and the relevant range is 4,000 hours to 26,000 hours. The increment of activity chosen for the flexible budget
Select answer from the options below
is largely a matter of judgment.
should be the same as those used by others companies throughout the industry.
should be no smaller than 100 hours and no larger than 1,000 hours.
is determined by the Cost Accounting Standards Board.

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