A before-the-fact flexible budget
A) calculates expected costs for various levels of activity.
B) allows managers to deal with uncertainty.
C) can be used to generate results for a number of plausible scenarios.
D) is a useful planning tool.
E) All of these.

Question

Quizplus · Accepted Answer

A before-the-fact flexible budget calculates expected costs for various levels of activity, allows managers to deal with uncertainty, can be used to generate results for a number of plausible scenarios, and is a useful planning tool. Therefore, all of these options are correct.

A Before-The-Fact Flexible Budget