Compared to a Static Budget, a Flexible Budget Based on Varying

Multiple Choice

Compared to a static budget, a flexible budget based on varying levels of sales volume provides a better basis for performance evaluation because:

A) It explicitly accounts for forecast errors.
B) It is presented at a greater level of detail.
C) It can be adjusted to allow for the impact of changing volume on variable costs.
D) It is less susceptible to sandbagging by lower-level managers.