Flexible budgets are used as a tool for
A)control, planning, and materiality.
B)evaluation, materiality, and flexibility.
C)planning flexibility, and evaluation.
D)control, planning, and evaluation.

Question

Quizplus · Accepted Answer

Flexible budgets are used as a tool for control by providing managers with the ability to compare actual results with expected results and take corrective actions if necessary. They are also used for planning by providing a framework for setting performance targets and evaluating the impact of changes in operations. Finally, they are used for evaluation by providing a basis for comparing actual results with expected results and identifying areas for improvement. Therefore, the best choice is D, which includes all three purposes of flexible budgets: control, planning, and evaluation.

Flexible Budgets Are Used as a Tool for