Flexible budget

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A flexible budget is;

A. A budget which by recognising different cost behaviour patterns is designed to change as the volume of activity changes.

B. A budget for a defined period of time which includes planned revenues, expenses, assets, liabilities and cash flow.

C. A budget which is prepared for a period of one year which is reviewed monthly, whereby each time actual results are reported, a further forecast period is added and the intermediate period forecasts are updated.

D. A budget of semi-variable production costs only.

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