Which of the Following BEST Describes Flexible Budgets

question 43

Multiple Choice

Which of the following BEST describes flexible budgets?

• A) Flexible budgets have contingency funds to allow flexibility of spending.
• B) Flexible budgets summarize financial results at several different volume levels.
• C) Flexible budgets are an integral part of the master budget.
• D) Flexible budgets can accommodate several different price structures.

---

Definitions:

Patent Rights

Legal protections granted to inventors that give them exclusive rights to make, use, sell, and distribute their inventions for a certain period of time.

Inelastic Demand

A scenario where the product's demand remains largely unaffected despite variations in its price.

Licensing

A requirement that one obtain permission from the government in order to perform certain business activities or work in various occupations.

Essential Resource

A fundamental input or asset that is necessary for the production processes or for sustaining life and economic activities.