A flexible budget Classifies budget requests by activity and estimates the benefits arising from each activity Presents a statement of expectations for a period but does not present a firm commitment Presents the plan for only one level of activity and does not adjust to changes in the level of activity oS Presents the plan for a range of activity so that the plan can be adjusted for changes in activity Divides the activities of individual responsibility centers into a series of packages ranked ordinally

(AICPA Adapted.)