Q272
A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as:
A.
Master budget
B.
Zero base budget
C.
(Functional budget
D.
Flexible budget
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as Flexible budget. A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The flexible budget is more sophisticated and useful than a static budget. (The static budget amounts do not change.