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 characterized by choices "B" and "D" abovE.

Question

Quizplus · Accepted Answer

A flexible budget is preferred over a static budget in the evaluation of performance as it allows for adjustments based on actual levels of activity. It also gives management flexibility in terms of meeting budget goals. Additionally, it can be used to compare actual and budgeted costs at various levels of activity, allowing for better analysis of performance. Therefore, the answer is choice E which includes both options B and D.

A Flexible Budget