A flexible budget may be prepared:
A) Only when the company encounters excessive costs.
B) At any time in the planning period.
C) During the operating period only.
D) Before the operating period only.
E) After the operating period only.

Question

Quizplus · Accepted Answer

A flexible budget can be prepared at any time during the planning period, not just when the company encounters excessive costs. It is also prepared to adjust to changes in the operating environment or to analyze actual results during the operating period. Therefore, options C, D, and E are not correct. The best option is B.

A Flexible Budget May Be Prepared