Budgets based on the actual level of output, rather than the output originally budgeted, are called:
A) Activity budgets
B) Flexible budgets
C) Operating budgets
D) Static budgets

Question

Quizplus · Accepted Answer

A flexible budget is prepared after the fact as a means of comparing actual costs with the budgeted costs for the actual output level achieved, rather than comparing actual costs with the original output level budgeted.

Budgets Based on the Actual Level of Output, Rather Than