Question

21.What type of budget is designed to take into account the cost at different level of

activities

a. Master budget

b. Rolling budget

c. Flexible budget

d. Capital budget

Answer 1

Answer:

c. Flexible budget

Explanation:

Flexible Budget Accounting

A flexible budget adjusts to changes in actual revenue levels. Actual revenues or other activity measures are entered into the flexible budget once an accounting period has been completed, and it generates a budget that is specific to the inputs. The budget is then compared to actual expenses for control purposes.