A flexible budget is "flexible" in the sense that a budget can be prepared for any level of activity,but once a budget is set the budget figures are not changed if actual activity later proves to be different than budgeted activity.

Question

Quizplus · Accepted Answer

A flexible budget allows for adjustments in the budget figures based on changes in activity levels. Therefore, the statement given in the question is false.

A Flexible Budget Is "Flexible" in the Sense That a Budget