A budget prepared for a particular level of activity is a(n)
A) operational budget.
B) ABB budget.
C) static budget.
D) flexible budget.
E) variable budget.

Question

Quizplus · Accepted Answer

A budget prepared for a particular level of activity is known as a static budget. This budget remains unchanged regardless of the actual level of activity achieved. It is useful for planning and control purposes, but it may not provide accurate information when the actual level of activity differs significantly from the budgeted level. Thus, it may not be very effective for decision-making purposes.

A Budget Prepared for a Particular Level of Activity Is