A flexible budget is most useful
A) for budgeting and planning purposes.
B) when actual output equals budgeted output.
C) as a cost control tool to help evaluate performance.
D) when a product's cost structure includes variable costs only.

Question

Quizplus · Accepted Answer

A flexible budget is most useful as a cost control tool to help evaluate performance because it adjusts for actual levels of activity, allowing for a more accurate comparison between budgeted and actual costs.

A Flexible Budget Is Most Useful