A flexible budget can be prepared for which of the following budgets comprising the master budget?
A) Sales
B) Overhead
C) Direct materials
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

A flexible budget can be prepared for all the budgets comprising the master budget, including sales, overhead, and direct materials. A flexible budget is a budget that adjusts the budgeted amounts based on the actual level of activity achieved, and it is useful for monitoring and controlling costs.

A Flexible Budget Can Be Prepared for Which of the Following