Accounting · Budgetary Control
Which of the following best describes the purpose of a flexible budget?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To ensure that operational managers remain motivated throughout the financial year
- 2To facilitate budgetary control by establishing a budget relevant to the actual level of activity✓
- 3To facilitate control by preventing any discretionary expenditure from being incurred
- 4To enable accurate reforecasting only when all actual costs are fully finalized
Correct answer
To facilitate budgetary control by establishing a budget relevant to the actual level of activity
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