A report based on predicted amounts of revenues and expenses corresponding to the actual level of output is called a:
A) Rolling budget.
B) Production budget.
C) Flexible budget.
D) Merchandise purchases budget.
E) Fixed budget.

Question

Quizplus · Accepted Answer

A flexible budget is based on predicted amounts of revenues and expenses that correspond to the actual level of output. It can be adjusted based on changes in the level of output, making it more flexible than a fixed budget, which is based on a set amount of revenues and expenses. Rolling budget is a budget that is continuously updated over a specific period of time, such as monthly or quarterly, in order to provide a current view of expenses and revenues. Production budget is a budget that details the expected amount of products that will be produced during a specific period of time. Merchandise purchases budget is a budget that outlines the anticipated amount of purchases needed to meet the anticipated sales demands.

A Report Based on Predicted Amounts of Revenues and Expenses