39. Which of the following is true of flexible budgets? a.They enable firms to compute expected...
39.
Which of the following is true of flexible budgets?
a.They enable firms to compute expected costs for a range of activity levels.
b.They do not require the managers to know the cost behavior pattern of each item in the budget.
c.They allow managers to develop financial results for only one potential scenario.
d.They serve only the control needs of management of an organization.
e.All of these choices are correct.
Homework Answers
Answer : option (a)
they enable firms to compute expected costs for a range of activity
they allow managers to deal with uncertainty.
they allow the calculation of what cost should be for the actual
level of activity.
they allow the preparation of meaningful performance reports.
they help measure managerial efficiency.
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