A summary of expected costs for a range of activity levels that is geared to changes in the level of productive output, is the definition of a:
A) master budget.
B) continuous budget.
C) flexible budget.
D) departmental budget.

Question

Quizplus · Accepted Answer

A summary of expected costs for a range of activity levels that is geared to changes in the level of productive output describes a flexible budget. A flexible budget allows for adjustments to be made based on changes in activity levels, which makes it a more useful tool for management than a static budget. A master budget is an overall budget for an entire organization, a continuous budget is a budget that is updated regularly throughout the year, and a departmental budget is specific to a particular department within an organization.

A Summary of Expected Costs for a Range of Activity