A budget that can be easily adjusted 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 is designed to adjust to changes in activity level, making it easy to show the impact of those changes on budgeted revenues, costs, and cash flows. It allows for more accurate forecasting and better decision making, especially in situations where activity levels are uncertain or variable. A master budget is a comprehensive financial plan that covers all aspects of a company's operations typically for a fixed period, such as a year. A production budget is a plan for how much and when to produce specific items, usually within a specific period. A multi-level budget is not a commonly used term in accounting or finance.

A Budget That Can Be Easily Adjusted to Show Budgeted