The primary difference between a fixed (static)budget and a flexible budget is that a fixed budget
A)cannot be changed after the period begins,whereas a flexible budget can be changed after the period begins.
B)is concerned only with future acquisitions of fixed assets,whereas a flexible budget is concerned with expenses that vary with sales.
C)is a plan for a single level of production,whereas a flexible budget is several plans (one for each of several production levels).
D)includes only fixed costs,whereas a flexible budget includes only variable costs.

Question

Quizplus · Accepted Answer

A fixed (static) budget is prepared for a single level of activity or production, while a flexible budget adjusts for various levels of activity, allowing for a more accurate comparison of budgeted to actual costs across different production levels.

The Primary Difference Between a Fixed (Static)budget and a Flexible