Select the choice that best describes the steps in developing a flexible budget.

A.

1. Identify the standard quantity of output.

2. Calculate the flexible budget for revenues based on budgeted selling price and standard quantity of output.

3. Calculate the flexible budget for costs based on budgeted variable cost per output, standard quantity of output, and budgeted fixed costs.

B.

1. Identify the actual quantity of output.

2. Calculate the flexible budget for revenues based on budgeted selling price and actual quantity of output.

3. Calculate the flexible budget for costs based on budgeted variable cost per output, actual quantity of output, and budgeted fixed costs.

C.

1. Identify the actual quantity of output.

2. Calculate the flexible budget for revenues based on budgeted selling price and actual quantity of output.

3. Calculate the flexible budget for costs based on budgeted variable cost per output, actual quantity of output, and actual fixed costs.

D.

1. Identify the actual price per output.

2. Calculate the flexible budget for revenues based on budgeted quantity of output and actual selling price.

3. Calculate the flexible budget for costs based on budgeted quantity of output, actual cost per output, and actual fixed costs.