The formula budgeted fixed costs plus (number of units times variable cost per unit) represents which concept?

• A. A summary of actual costs incurred.
• B. The budgeted costs in the flexed budget for each cost item (what we expect the cost to be at different levels of activity).
• C. Actual costs incurred during the period.
• D. Budgeted fixed costs plus (number of units times variable cost per unit).

Answer: (D)