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

Question

Quizplus · Accepted Answer

A static budget is prepared for a particular level of activity, and does not change regardless of actual activity levels. It is typically used for a specific time period, such as a fiscal year, and is often used to plan and control expenses for that time period. An operational budget includes estimates of revenue and expenses for day-to-day operations, while a capital budget is used to plan for long-term investments in assets such as property, equipment, or infrastructure. A flexible budget, on the other hand, adjusts for actual activity levels and is often used in variable cost environments to better align revenues and expenses.

Which Budget Is Prepared for a Particular Level of Activity