A flexible budget:
A) classifies budget requests by activity and estimates the benefits arising from each activity.
B) presents a statement of expectations for a period of time but does not present a firm commitment.
C) presents the plan for only one level of activity and does not adjust to changes in the level of activity.
D) presents the plan for a range of activity so that the plan can be adjusted for changes in activity levels.

Question

Quizplus · Accepted Answer

A flexible budget presents a plan for a range of activity, allowing for adjustments to be made for changes in activity levels. It is designed to be adaptable to changes in actual activity levels and provides a more realistic view of performance by taking into account the variability of activity levels.

A Flexible Budget