The flexible budget
A) is prepared before the master budget.
B) is relevant both within and outside the relevant range.
C) eliminates the need for a master budget.
D) is a series of static budgets at different levels of activity.

Question

Quizplus · Accepted Answer

The flexible budget is a series of static budgets at different levels of activity, which enables businesses to adjust their budgets based on varying levels of activity. It does not replace the master budget, but rather serves as a tool for businesses to evaluate their performance against different levels of activity.

The Flexible Budget