Which budget is prepared for a particular level of activity?
A) static budget
B) capital budget
C) flexible budget
D) operational budget

Question

Quizplus · Accepted Answer

A static budget is prepared for a particular level of activity, based on predicted revenue and expenses at a certain level of production, sales, or output. It is fixed and does not change with changes in the level of activity. This type of budget is useful for setting targets and evaluating performance.

Which Budget Is Prepared for a Particular Level of Activity