A flexible budget:
A) parallels a static budget with respect to format and advantages of use.
B) is preferred over a static budget in the evaluation of performance.
C) gives management flexibility in terms of meeting budget goals.
D) can be used to compare actual and budgeted costs at various levels of activity.
E) is both preferred over a static budget in the evaluation of performance and can be used to compare actual and budgeted costs at various levels of activity.

Question

Quizplus · Accepted Answer

A flexible budget adjusts for different levels of activity, making it more useful than a static budget for performance evaluation and for comparing actual to budgeted costs across different activity levels.

A Flexible Budget