The Purpose of Creating a Flexible Budget Is To

Multiple Choice

The purpose of creating a flexible budget is to:

A) Determine how much of the difference between actual and budgeted profits was due strictly to the difference between budgeted and actual sales.
B) Determine how much of the difference between actual and budgeted profits was due strictly to the difference between budgeted and actual variable costs.
C) Determine how much of the difference between actual and budgeted profits was due strictly to the difference between budgeted and actual fixed costs.
D) Determine which department is responsible for the overall budget variance.