A flexible budget:
A)Consists of estimates of costs and expenses for various possible levels of activity.
B)Is designed to be adjusted at frequent intervals for changes in the general price level.
C)Is better suited for use with a job cost system than a standard cost system.
D)Cannot be prepared when a standard cost system is in use.

Question

Quizplus · Accepted Answer

A flexible budget consists of estimates of costs and expenses for various possible levels of activity. It is designed to be adjusted for changes in activity levels, allowing businesses to better plan for uncertain future events. It is not related to the general price level, nor is it specific to any particular cost accounting system.

A Flexible Budget