An advantage of a flexible budget is that it:
A) Allows comparisons of the actual costs with those that should have been incurred
B) Considers only variable costs
C) Allows management freedom in meeting goals
D) Allows comparison of actual costs to master budget costs

Question

Quizplus · Accepted Answer

A flexible budget adjusts for different levels of activity, allowing for a more accurate comparison between actual costs and what the costs should have been for the actual level of activity, making it easier to identify variances and control costs.

An Advantage of a Flexible Budget Is That It