Which one of the following statements best describes a Flexible Budget?

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Which one of the following statements best describes a Flexible Budget?

A. It is a budget that is designed to change with respect to the volume of activity changing because it recognizes different cost behavior patterns.

B. It is a budget that should exist for a specific period of time and has planned revenues, expenses, assets and liabilities.

C. It is a budget that lasts for a year and thereafter reviewed monthly and each time its reviewed, the results are reported and a forecast period added as the intermediate period forecasts get updated.

D. It is a type of budget that covers semi-variable production costs only.

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