Pellini Products Inc

Multiple Choice

Pellini Products Inc. is a manufacturer of paper products. For which of the following activities would Pellini be more likely to use a flexible budget than a static budget?

A) For planning the quantity of direct materials that will be need to be purchased in the upcoming year.
B) For planning the estimated cash receipts in the upcoming year.
C) For estimating the number of direct labor hours employees will need to work in the upcoming year.
D) For the evaluation of whether or not employees made the most efficient use of their time during the year.