What is the definition of a flexible-based budgeting system?
A)It uses functional-based line items.
B)It splits costs into variable and fixed components.
C)It provides costs for a variety of activity levels.
D)It develops budgets around a single expected level of activity.

Question

Quizplus · Accepted Answer

A flexible-based budgeting system provides costs for a variety of activity levels, taking into account changes in volume, and allows for adjustments to be made according to the actual level of activity. This approach helps organizations to better allocate their resources and manage their budgets in a more effective way. Options A and B do not fully capture the essence of a flexible-based budgeting system, while option D is incorrect as it does not allow for variations in activity levels.

What Is the Definition of a Flexible-Based Budgeting System