Asked by Annie Mueller on Jun 04, 2024
Verified
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.
- Understand the framework and utilization of an adjustable budget across diverse degrees of output or service provision.
Verified Answer
AU
Aidai UranbekkyzyJun 10, 2024
Final Answer :
D
Explanation :
A flexible budget can be prepared at any time during the planning period to adjust for changes in operating conditions or to compare actual performance to planned performance.
Learning Objectives
- Understand the framework and utilization of an adjustable budget across diverse degrees of output or service provision.
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