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Which of the following companies is most likely to prepare a flexible budget for

ID: 2487844 • Letter: W

Question

Which of the following companies is most likely to prepare a flexible budget for their products or services?

A : Clearwater Chemicals, which regularly sells $12,000 - $12,200 worth of sodium bicarbonate each month.

B : Toy Works, which produces and sells 60% of their toys in November and December, with fluctuating sales the rest of the year.

C : Blacknight Restaurants, which has a two-month waiting list for reservations.

D : Handmade Furnishings, which requires a preorder time of two months for handmade furniture pieces.

Explanation / Answer

Which of the following companies is most likely to prepare a flexible budget for their products or services?

A : Clearwater Chemicals, which regularly sells $12,000 - $12,200 worth of sodium bicarbonate each month.

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