A flexible is a budget where:

Question

Quizplus · Accepted Answer

A flexible budget is a budget that adjusts to changes in the actual level of activity, and includes estimates for a range of activities, rather than just one level. This allows for greater flexibility in responding to changes in the business environment, and more accurate estimates of costs and revenues. Fixed costs are still included in a flexible budget, but they are separated from variable costs, which vary with the level of activity. The estimates can be revised if they are not attained, allowing for better planning and control. The preparation of a flexible budget should not be postponed if the entity is busy or short-staffed, as timely budgeting is essential for effective management.

A Flexible Is a Budget Where