Which budget is used to assess managerial efficiency?
A) static budget
B) capital budget
C) flexible budget
D) operational budget

Question

Quizplus · Accepted Answer

Flexible budgets are useful for assessing managerial efficiency because they allow for variance analysis, which compares actual results to expected results based on different levels of activity. This helps managers to identify areas where they may be able to improve efficiency and make adjustments as necessary. Static budgets are fixed and do not take into account changes in activity levels, while capital budgets are focused on long-term investments and operational budgets are used for day-to-day operations.

Which Budget Is Used to Assess Managerial Efficiency