The purpose of the flexible budget is to: Multiple Choice allow management some latitude in meeting goals. eliminate cyclical fluctuations in production reports by ignoring variable costs. reduce the total time in preparing the annual budget. compare actual and budgeted results at virtually any level of production.

Compare actual and budgeted results at virtually any level of production.

Explanation:

Budget is an estimation of financial plan and operational expenses of an organization with a period. Budget helps to prepare what will be spent by an organization and measured against actual performance at the end of the financial period.

Flexible budget is a budget designed to adjust to changes in level of current revenue. It compares the actual and budgeted results or performance at every level of production.

Management often uses flexible budget to address both areas that were successful and not succesful in past performance. It is used to prepare for the worst or best case situation.

Example of flexible budget is when management identify and analyze cost(Fixed and Variable cost) which affects revenue and expenses. Fixed cost which is fixed at every output level and variable cost which varies with the output level.