In the context of budgeting, a flexible budget:
A) is based on a single assumed level of sales.
B) is designed to show the appropriate budgeted level of costs for each different level of sales.
C) is the budget that is prepared before a static budget.
D) cannot be used by companies for evaluation and comparisons involving real-world sales situations.

Question

Quizplus · Accepted Answer

A flexible budget adjusts for different levels of sales, allowing for more accurate cost management and evaluation.

In the Context of Budgeting, a Flexible Budget