A budget that automatically indicates an increase in the amount of resources allocated for various organizational activities when production levels go up is called a(n)________.
A)variable budget
B)zero-base budget
C)parallel budget
D)incremental budget
E)dependable budget

Question

Quizplus · Accepted Answer

A variable budget adjusts based on changes in the level of activity, such as production levels, making it the correct choice for a budget that automatically indicates an increase in resources when production levels go up.

A Budget That Automatically Indicates an Increase in the Amount