At Taylor Activewear, orders have significantly exceeded projections, and Macon, the operations director, has decided to hire for a third shift in the plant. Macon is clearly operating with the use of a(n) ________ budget.
A) zero-based
B) incremental
C) cash
D) fixed
E) variable

Question

Quizplus · Accepted Answer

Also known as a flexible budget, a variable budget allows the allocation of resources to vary in proportion with various levels of activity. That is, the budget can be adjusted over time to accommodate pertinent changes in the environment.

At Taylor Activewear, Orders Have Significantly Exceeded Projections, and Macon