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A- Control of direct labor and direct materials but not fixed factory overhead.
B- Control of fixed factory overhead but not direct materials and direct labor.
C- Control of direct labor and direct materials but not selling and administrative expenses.
D- Any level of activity.
D- Budget is prepared for any level of activity, revenue expenses, overhead
A is correct <<<<<<<<<<<<<<<<<<<<<<<<<<<<<,
A flexible budget is actually a series of several budgets prepared for many levels of operating activity. A flexible budget is designed to allow adjustment of the budget to the actual level of activity before comparing the budgeted activity with actual results.
Flexible budget allows changes when planning for the year
the corect answer is a
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A flexible budget is appropriate because it can be adjusted according to needs and times.
Direct attributable expenses to product or services. It is not suitable for fixed expenses which can not be attibuted to products or services.
Correct awnser is A.
Flexible budget is appropriate for any level of activity.
However it should complement business growth plans and should be monitored on routine wrt short term targets.
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