Question

A flexible budget is appropriate for a(n):

Direct Labor Budget Marketing Budget Administrative Expense Budget
A. No No No

B. No Yes Yes

C. Yes No Yes

D. Yes Yes Yes

E. No No Yes

Answer 1

A flexible budget is appropriate for a Direct Labor Budget, Marketing Budget, and Administrative Expense Budget. Correct option is D.

Step-by-step explanation:

A flexible budget is appropriate for a Direct Labor Budget, Marketing Budget, and Administrative Expense Budget.

In a flexible budget, the budgeted amounts are prepared based on different levels of activity. This allows for adjustments to be made as actual activity levels change.

Direct Labor Budget, Marketing Budget, and Administrative Expense Budget are areas where the costs or expenses can fluctuate based on activity levels, making a flexible budget more appropriate.