A flexible budget differs from a static budget in that it:

A flexible budget differs from a static

Multiple choice — select the best answer

AIs prepared only at the end of the period
BCannot be used for variance analysis
CIs adjusted to reflect the actual level of activity achieved
DIgnores variable costs

✓ Correct answer: C. Is adjusted to reflect the actual level of activity achieved A flexible budget restates budgeted revenues and costs for the actual output level, isolating price/efficiency effects from volume effects.

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Topic: Planning & Budgeting

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A flexible budget differs from a static budget in that it:

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