A flexible budget: Multiple Choice is both preferred over a static budget in the evaluation of performance and can be used to compare actual and budgeted costs at various levels of activity. gives management flexibility in terms of meeting budget goals. parallels a static budget with respect to format and advantages of use. can be used to compare actual and budgeted costs at various levels of activity.

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers.b) may not accept the offer because it is considered lavish entertainment.c) must obtain written consent from batts brothers before accepting the offer.