Flexible budgets reflect:
I. Operations for actual costs and revenues
II. Operations for costs and revenues for the volume of sales from the master budget
III. Operations for actual volume of sales with budgeted variable costs per unit and budgeted total fixed costs
A) I only
B) II only
C) III only
D) II and III only

Question

Quizplus · Accepted Answer

Flexible budgets are designed to adjust for the actual volume of sales, applying budgeted variable costs per unit and budgeted total fixed costs, making option III correct.

Flexible Budgets Reflect: I. Operations for Actual Costs and Revenues