What type of budget is most appropriate for control purposes?
A)static budget
B)flexible budget
C)continuous budget
D)incremental budget

Question

Quizplus · Accepted Answer

A flexible budget is most appropriate for control purposes because it adjusts to changes in the level of activity, allowing for more accurate comparisons between actual and budgeted performance. This adaptability makes it a valuable tool for managers to control operations and costs effectively. Static budgets, in contrast, do not adjust for changes in activity levels, making them less useful for control purposes. Continuous and incremental budgets serve different purposes, focusing on ongoing budgeting processes and year-over-year adjustments, respectively.

What Type of Budget Is Most Appropriate for Control Purposes