The _____ budget shows the expected results of a responsibility center for several activity levels.
A) flexible
B) standard
C) break-even
D) static

Question

Quizplus · Accepted Answer

A flexible budget shows expected results at different activity levels, allowing for more accurate forecasting and planning. Standard budgets set specific targets and break-even budgets show the point at which costs and revenue are equal, but neither of these show the expected results at varying levels of activity. A static budget is a budget that remains unchanged, regardless of changes in activity levels, and does not take into account the expected results of different levels of activity.

The _____ Budget Shows the Expected Results of a Responsibility