9 and 10

(2) 9) Which one of the following statements best describes a flexible budget? a) A budget that is adjusted to reflect different costs at different activity levels. b) A budget that comprises variable costs only. C) A budget that is constantly being changed. d) A budget that calculates budgeted income and budgeted costs according to actual production volume 10) Cost-volume-profit analysis can be used as a sensitivity analysis technique to determine what the effect of certain internal decisions of management or external changes will be on profits, break-even and margin of safety figures. If all other factors were kept constant, which one of the following will lead to an increase in profit? (2) a) Decrease in selling price per unit. b) Decrease in sales volumes. c) Increase in variable cost per unit. d) Decrease in total fixed costs