A fixed budget does not allow for adjustment over time except when there are pertinent changes in the environment.

Question

Quizplus · Accepted Answer

A fixed budget allocates resources on the basis of a single estimate of costs.That is, there is only one set of expenses; the budget does not allow for adjustment over time.A variable budget allows the allocation of resources to vary in proportion with various levels of activity.That is, the budget can be adjusted over time to accommodate pertinent changes in the environment.

A Fixed Budget Does Not Allow for Adjustment Over Time