Which of the following statements is a true statement about flexible budgets?

Comprehensive and Detailed Explanation:

Flexible budgets adjust budgeted revenues and expenses based on actual activity levels. These budgets include all relevant costs, including variable and fixed S&A expenses.

According to Saylor BUS105:

“Flexible budgets are used after the period ends to evaluate performance by comparing actual results to a budget based on actual activity. They include selling and administrative expenses.”

Answer: C