A flexible budget may be prepared:

A) Before the operating period only.
B) After the operating period only.
C) During the operating period only.
D) At any time in the planning period.
E) Only when the company encounters excessive costs.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, providing a more accurate comparison of actual to budgeted expenses.

Operating Period

This term describes the span of time during which a business operates or performs its principal activities, often measured in fiscal quarters or years.