A flexible budget is used to evaluate:
A) Costs that should have been incurred for a level of output achieved.
B) Costs that should have been incurred for a level of output considered to be normal.
C) How variable unit costs change as output changes.
D) How flexible management was at adapting to changes in business conditions.

Question

Quizplus · Accepted Answer

A flexible budget is used to evaluate costs that should have been incurred for the actual level of output achieved, allowing for a comparison between actual and expected costs at that specific level of activity.

A Flexible Budget Is Used to Evaluate