A ﬂexible budget:
A)parallels a static budget with respect to format and advantages of use.
B)is preferred over a static budget in the evaluation of performance.
C)gives management ﬂexibility in terms of meeting budget goals.
D)can be used to compare actual and budgeted costs at various levels of activity.
E)is both preferred over a static budget in the evaluation of performance and can be used to compare

Question

Quizplus · Accepted Answer

A flexible budget is preferred over a static budget in the evaluation of performance as it adjusts to changes in activity levels, making it easier to compare actual and budgeted costs. It also gives management flexibility in terms of meeting budget goals. Therefore, option E is the best choice.

A ﬂExible Budget