The purpose of the flexible budget is to:
A) allow management some latitude in meeting goals.
B) eliminate cyclical fluctuations in production reports by ignoring variable costs.
C) compare actual and budgeted results at virtually any level of production.
D) reduce the total time in preparing the annual budget.

Question

Quizplus · Accepted Answer

A flexible budget allows for comparison of actual and budgeted results at different levels of production by adjusting for changes in volume, making it a useful tool for performance evaluation.

The Purpose of the Flexible Budget Is To