Answer (D) is correct . A flexible budget is actually a series of budgets prepared for various levels of activity. Thus, it is appropriate for any level of activity. A flexible budget approach is appropriate for an administrative budget, a marketing budget, and a production budget because each contains some elements that vary with the activity level and some that do not.
Answer (A) is incorrect because A flexible budget is appropriate for an administrative budget, marketing budget, and a production budget.
Answer (B) is incorrect because A flexible budget is also appropriate for a marketing budget.
Answer (C) is incorrect because A flexible budget is appropriate for an administrative budget and a production budget.
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