A budget that is based on one predicted amount of sales or other activity measure is a:Multiple ChoiceVariable budget.Sales budget.Fixed budget.Flexible budget.Standard budget.
Question
A budget that is based on one predicted amount of sales or other activity measure is a:Multiple ChoiceVariable budget.Sales budget.Fixed budget.Flexible budget.Standard budget.
Solution
The correct answer is: Flexible budget.
A flexible budget is based on different levels of activity. It is more sophisticated than a static budget, which remains unchanged over the period. With a flexible budget, costs are able to fluctuate with changes in activity levels, such as sales volume.
Similar Questions
A budget that is based on more than one amount of sales or other activity measure is called a:Multiple ChoiceFlexible budget.Rolling budget.Fixed budget.Production budget.Merchandise purchases budget.
A(n) budget is based on one predicted amount of sales or other activity measure.
Variable budget is another name for:Multiple ChoiceCash budget.Rolling budget.Fixed budget.Manufacturing budget.Flexible budget.
The budget commonly used to set the level of activity for the period is the:Group of answer choicespurchases budget.production budget.inventory budget.sales budget.
The first step in preparing a flexible budget is to:Multiple choice question.compute budgeted salesidentify costs and classify them as fixed or variableidentify activity levelscompute budgeted variable and fixed costs
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