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Which one of the following budgeting methodologies would be most appropriate for a firm facing a significant level of uncertainty in unit sales volumes for next year? A. Life-cycle budgeting B. Top-down budgeting C. Flexible budgeting D. Static (fixed) budgeting

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Answer:

D. Flexible budgeting is the correct answer.

Explanation:

Flexible budgeting is the budget plan that changes as per the company's requirement.

The advantages Flexible budgeting are:

  • It assists the management of the organization to decide about the business situation and production level.
  • It helps to know the amount of product to be required for the growth of the organization and to achieve the profit level.

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