Asked by Rafaiel Ghazaryan on May 05, 2024
Verified
A flexible budget can be prepared for each of the types of budgets included in the master budget.
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting and forecasting.
Master Budget
Comprehensive financial planning document that includes all of a company's financial plans, including sales, production, purchasing, and financial budgets.
- Highlight the distinctions and applications of static and flexible budgets in managing financial expenditures.
- Identify the role of flexible budgets in performance evaluation and control.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
True
Explanation :
A flexible budget allows for adjustments to be made based on changes in activity levels, and can therefore be applied to any type of budget within the master budget.
Learning Objectives
- Highlight the distinctions and applications of static and flexible budgets in managing financial expenditures.
- Identify the role of flexible budgets in performance evaluation and control.