With regard to flexible budgets, which of the following statements is true?
A)They are prepared for one level of sales volume.
B)Managers use them to help plan for uncertainties.
C)They are prepared by the accounting department on an annual basis.
D)They are designed to estimate revenues only.

Question

Quizplus · Accepted Answer

Flexible budgets are designed to help managers plan for uncertainties, such as changes in sales volume or unexpected expenses. They are not prepared for just one level of sales volume, but rather can be adjusted to accommodate different levels. They are not necessarily prepared by the accounting department on an annual basis, and they are designed to estimate both revenues and expenses, not just revenues.

With Regard to Flexible Budgets, Which of the Following Statements