A budget based on several different levels of activity,often including both a best-case and worst-case scenario,is called a:
A)Rolling budget.
B)Production budget.
C)Flexible budget.
D)Merchandise purchases budget.
E)Fixed budget.

Question

Quizplus · Accepted Answer

A flexible budget is designed to adjust to changes in activity levels, and can include multiple scenarios based on different levels of activity. Rolling budgets are constantly updated and revised, while production budgets only focus on the production process. Merchandise purchases budgets only relate to purchases of goods for resale, and fixed budgets do not allow for adjustments based on changes in activity levels.

A Budget Based on Several Different Levels of Activity,often Including