Flexible budgets imply
A)that sales managers can have a wide latitude in modifying prices during the year.
B)that a firm will have different levels of activity and costs during a year.
C)the budget process may not be accurate at the beginning of the budget year.
D)each manager is free to change the budget as the year progresses.

Question

Quizplus · Accepted Answer

Flexible budgets are designed to accommodate different levels of activity and costs during a year. They allow for adjustments to be made to the budget based on actual activity levels, so that the budget remains accurate and relevant throughout the year. They do not necessarily imply that sales managers can change prices or that each manager is free to modify the budget at will.

Flexible Budgets Imply