Which of the Following Is True of Flexible Budgets

Multiple Choice

Which of the following is true of flexible budgets?

A) They serve only the control needs of management of an organization.
B) They enable firms to compute expected costs for a range of activity levels.
C) They allow managers to develop financial results for only one potential scenario.
D) They do not require the managers to know the cost behavior pattern of each item in the budget.
E) All of these are correct.