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

Question

Quizplus · Accepted Answer

A flexible budget adjusts both revenues and expenses for changes in output, allowing for more accurate budgeting based on actual results. A flexible budget takes into account the impact of changes in output on both revenues and expenses, making it a useful tool for planning and analysis. Options A, C, D, and E do not accurately describe a flexible budget.

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