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    Question

    A budget that changes with the level of activity is

    a:
    A Fixed Budget Correct Answer Incorrect Answer
    B Flexible Budget Correct Answer Incorrect Answer
    C Master Budget Correct Answer Incorrect Answer
    D Cash Budget Correct Answer Incorrect Answer
    E Capital Budget Correct Answer Incorrect Answer

    Solution

    A Flexible Budget is designed to flex, or adjust, for changes in the actual level of activity. It is prepared for a range of activities rather than a single level, making it a more useful tool for performance evaluation.

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