What is a flexible budget?

BUDGET AND VARIANCE ANALYSIS - Flexible Budgeting Quiz

Quiz
•
Business
•
University
•
Hard
Vimala C
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A budget that is inflexible and cannot be adjusted
A budget that only accounts for fixed costs
A budget that never changes
A budget that adjusts for changes in activity levels
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Explain the concept of flexible budgeting and its importance in variance analysis.
Flexible budgeting is not necessary for variance analysis, as it does not affect the results.
Flexible budgeting allows for adjustments in budgeted figures based on changes in activity levels, which provides a more accurate basis for variance analysis.
Flexible budgeting is only important for small businesses, not for large corporations.
Flexible budgeting is a fixed budget that does not change regardless of activity levels.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What are the key components of a flexible budget?
Operating costs, capital costs, and indirect costs
Fixed costs, variable costs, and historical costs
Direct costs, indirect costs, and sunk costs
Variable costs, fixed costs, and the level of activity
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How is a flexible budget different from a static budget?
A static budget is always accurate
A flexible budget is not suitable for long-term planning
A flexible budget does not consider changes in activity levels
A flexible budget adjusts for changes in activity levels.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Discuss the advantages of using a flexible budget in variance analysis.
A flexible budget does not allow for adjustments based on different levels of activity
Using a flexible budget leads to inaccurate variance analysis
A flexible budget provides better comparison of actual results with expected results at different levels of activity.
A flexible budget makes it difficult to compare actual results with expected results
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What are the limitations of flexible budgeting?
Inability to adapt to changing business conditions
Unlimited flexibility and ability to accommodate any changes
Assumption of variable costs and need for inaccurate cost behavior predictions
Assumption of fixed costs and need for accurate cost behavior predictions
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Explain the process of preparing a flexible budget.
Guess the budget without considering activity levels
Only consider variable costs in the budget
Create a budget without adjusting for changes in activity levels
Identify activity levels, determine variable and fixed costs, and create a budget that adjusts for changes in activity levels.
Create a free account and access millions of resources
Similar Resources on Wayground
10 questions
Manage Finances - Element 1 Allocate Budget Resources

Quiz
•
University
10 questions
Introduction to Managerial Accounting

Quiz
•
University
10 questions
Budgeting and Cost

Quiz
•
University
15 questions
Understanding Financial Concepts

Quiz
•
University
10 questions
BUDGET AND VARIANCE ANALYSIS Quiz

Quiz
•
University
12 questions
Flexible Budget Quiz

Quiz
•
University
15 questions
4-21

Quiz
•
University
10 questions
FM2 - WC

Quiz
•
University
Popular Resources on Wayground
25 questions
Equations of Circles

Quiz
•
10th - 11th Grade
30 questions
Week 5 Memory Builder 1 (Multiplication and Division Facts)

Quiz
•
9th Grade
33 questions
Unit 3 Summative - Summer School: Immune System

Quiz
•
10th Grade
10 questions
Writing and Identifying Ratios Practice

Quiz
•
5th - 6th Grade
36 questions
Prime and Composite Numbers

Quiz
•
5th Grade
14 questions
Exterior and Interior angles of Polygons

Quiz
•
8th Grade
37 questions
Camp Re-cap Week 1 (no regression)

Quiz
•
9th - 12th Grade
46 questions
Biology Semester 1 Review

Quiz
•
10th Grade