A company would NOT need to use a flexible budget if it had perfect foresight about actual output units.

Question

Quizplus · Accepted Answer

A flexible budget is used to adjust budgeted amounts based on actual output units, which may differ from originally budgeted amounts. If a company had perfect foresight and knew exactly what their actual output units would be, they would not need to adjust their budgeted amounts and therefore would not need a flexible budget.

A Company Would NOT Need to Use a Flexible Budget