Question

A flexible budget requires careful study and classification of expenses into_____________.

• A. Product expenses and period expenses
• B. Past and current expenses
• C. Administrative, selling and factory expenses
• D. Fixed, semi-variable and variable expenses

Answer 1

The correct option is D Fixed, semi-variable and variable expenses

A flexible budget requires careful study and classification of expenses into Fixed, semi-variable and variable expense. A flexible budget is a budget which changes with the change in level of activity.