Which budget is used to assess managerial efficiency?
A) sales budget
B) production budget
C) static budget
D) flexible budget
E) cash budget

Question

Quizplus · Accepted Answer

The flexible budget is used to assess managerial efficiency as it provides a more accurate reflection of budgeted costs based on actual activity levels. It allows for adjustments to be made to the budget based on changes in activity levels and provides a more realistic measure of performance. The other budgets listed are important for planning and control, but do not provide the flexibility needed to assess managerial efficiency.

Which Budget Is Used to Assess Managerial Efficiency