The flexible budget highlights the differences between budgeted costs and budgeted quantities versus actual costs and actual quantities for the budgeted output level.

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This statement accurately describes the purpose and function of a flexible budget. A flexible budget is a tool that helps businesses and organizations understand how their actual performance compares to their planned performance, taking into account actual output levels, actual costs, and actual quantities of resources used. By comparing these actual results against the budgeted outcomes, managers can identify areas of strength as well as opportunities to improve efficiency and effectiveness in their operations.

The Flexible Budget Highlights the Differences Between Budgeted Costs and Budgeted