A budget that can be adjusted easily to show budgeted revenues, costs, and cash flows at different levels of activity is known as:
A) A flexible budget.
B) A master budget.
C) A production budget.
D) A multi-level budget.

Question

Quizplus · Accepted Answer

A flexible budget allows for easy adjustment to show budgeted revenues, costs, and cash flows at different levels of activity. This type of budget is designed to be adaptable and responsive to changes in the business environment or shifts in the company's operations. A master budget is a broader budget that includes all of the company's financial plans, while a production budget focuses specifically on production goals and costs. A multi-level budget is not a commonly used term in budgeting.

A Budget That Can Be Adjusted Easily to Show Budgeted