The "flexible budget" can best be described as a budget that adjusts:
A) Revenues for sales-dollar changes.
B) Budgeted revenues and expenses for changes in output (such as sales volume).
C) Expenses for changes in budgeted output between two periods.
D) For efficiency, but not selling price and cost, changes (variances) during a period.
E) For selling price and cost variances, but not efficiency variances.

Question

Quizplus · Accepted Answer

A flexible budget adjusts budgeted revenues and expenses based on changes in output, such as sales volume. This allows for a more accurate budgeting process by accounting for fluctuations in production and sales.

The "Flexible Budget" Can Best Be Described as a Budget