The flexible budget enables to highlight the differences between budgeted costs and budgeted quantities versus actual costs and actual quantities for the budgeted output level.

Question

Quizplus · Accepted Answer

The flexible budget is designed to adjust the budgeted costs and quantity based on actual output level, and therefore allows for comparison between budgeted and actual data at the same output level. This highlights any variances that may exist in terms of costs and volumes, and helps to identify areas for potential improvement.

The Flexible Budget Enables to Highlight the Differences Between Budgeted