A flexible budget

A) is prepared when management cannot agree on objectives for the company.
B) projects budget data for various levels of activity.
C) is only useful in controlling fixed costs.
D) cannot be used for evaluation purposes because budgeted data are adjusted to reflect actual results.

Flexible Budget

A budget that modifies itself according to variations in activity or volume levels.

Various Levels

Refers to differing stages or degrees within a hierarchy or system, often used in the context of organizational structure or data categorization.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.