A flexible budget is a more effective tool for performance evaluation than is a static budget.

Name: A flexible budget is a more effective tool for performance evaluation than is a static budget.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A flexible budget adjusts for changes in the volume of activity, making it a more accurate tool for evaluating actual performance against budgeted figures, as it can adapt to real-time conditions unlike a static budget which remains fixed regardless of changes in activity levels.

A Flexible Budget Is a More Effective Tool for Performance