Static and flexible budgets are similar in that:
A) They both are based on the same per unit variable amounts and the same fixed costs.
B) They both concentrate solely on costs.
C) They both are prepared for multiple activity levels.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

Flexible budgets differ from static budgets in that they show expected revenues and costs at a variety of volume levels;however,the same per unit variable costs and total fixed costs are used in both.

Static and Flexible Budgets Are Similar in That