A flexible budget is a budget that:
A) is updated with actual costs as they occur during the period.
B) is updated to reflect the actual level of activity during the period.
C) is prepared using a computer spreadsheet application.
D) contains only variable production costs.

Question

Quizplus · Accepted Answer

A flexible budget is a budget that adjusts to the actual level of activity during the period, allowing for more accurate budgeting and forecasting. It is not necessarily updated with actual costs as they occur, nor does it only contain variable production costs. Using a computer spreadsheet application may be helpful but is not a defining characteristic of a flexible budget.

A Flexible Budget Is a Budget That