Economics · Management Accounting
An organization operates in a volatile market where seasonal demand fluctuations and inflationary pressures on raw material costs are frequent. The management decides to implement a budget that allows for the adjustment of budgeted costs to the actual level of activity achieved during a specific period. Which type of budget is most appropriate for this purpose?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Fixed Budget
- 2Performance Budget
- 3Flexible Budget✓
- 4Zero-Based Budget
Correct answer
Flexible Budget
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