Select the Incorrect Statement Regarding Flexible Budgets

question 108

Multiple Choice

Select the incorrect statement regarding flexible budgets.

• A) Flexible budgets often show the estimated revenues and costs at multiple volume levels.
• B) A flexible budget is used to compare actual to budgeted amounts.
• C) A flexible budget is also known as a master budget.
• D) Standard prices and costs are used in preparing a flexible budget.

---

Definitions:

Primary Purpose

The main or most important reason for something's existence or function.

Visual Metaphor

A visual representation that uses an image to symbolically represent another concept, making abstract ideas more understandable.

Core Competencies

The main strengths or strategic advantages of a business, including the combination of pooled knowledge and technical capacities.

Sustainable Competitive Advantage

A long-term advantage over competitors achieved by offering greater value to consumers, not easily replicable.