When evaluating actual results at the end of an accounting period, the flexible budget provides the appropriate benchmark for actual operations.

Name: When evaluating actual results at the end of an accounting period, the flexible budget provides the appropriate benchmark for actual operations.
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Question

Quizplus · Accepted Answer

A flexible budget adjusts for changes in the volume of activity and is therefore a more accurate benchmark for evaluating actual results than a static budget, which remains at one level of activity.

When Evaluating Actual Results at the End of an Accounting