A flexible budget is geared toward: A. Only a single level of activity B. A range of activities C. Maximum production D. The whole company's activities
Answer: D. The whole company's activities.
Reason : Flexible budget is something that adjusts itself to the actual revenue. It considers every activity of the business and adjust the amounts according to the revenue or production levels. Then it is used for comparing with the actual expenses and control to increase efficiency and profitability of the business. for increasing the efficiency, we must consider whole of company's activities in the preparation of flexible budget.
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