Select the incorrect statement regarding flexible budgets.
A) Flexible budgets often show the estimated revenues and costs at multiple volume levels.
B) A flexible budget is used to compare actual to budgeted amounts.
C) A flexible budget is also known as a master budget.
D) Standard prices and costs are used in preparing a flexible budget.

Question

Quizplus · Accepted Answer

A flexible budget is not the same as a master budget. A master budget is a comprehensive financial plan that includes detailed budgets for all business activities, whereas a flexible budget is a tool that adjusts for changes in activity levels.

Select the Incorrect Statement Regarding Flexible Budgets