An advantage of a flexible budget is that it:
A) Considers only variable costs
B) Incorporates adjustments caused by volume changes
C) Allows management freedom in meeting goals
D) Allows comparison of actual costs to master budget costs

Question

Quizplus · Accepted Answer

Flexible budgets incorporate adjustments for changes in volume, making them more useful for analyzing performance by comparing budgeted costs at the actual level of activity to the actual costs incurred.

An Advantage of a Flexible Budget Is That It