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What is a flexible budget?
A. A budget that is changed to reflect the actual level of activity
B. A budget that is adjusted to reflect changing prices
C. A budget that can be used for several purposes
D. A budget that is revised to reflect changes as they occur
Sir here in this question
I guess the answer A but it is given B
Need help !
I do not know where you found this question, but as you have typed it then the answer is indeed A.
It means flexible budget doesn’t take care of changing price right ?
Correct – it does not.