A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as:

A. Master budget

B. Zero base budget

C. (Functional budget

D. Flexible budget

Answer: Option D

Solution(By Examveda Team)

A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as Flexible budget. A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The flexible budget is more sophisticated and useful than a static budget. (The static budget amounts do not change.