A static planning budget is:
A)a budget for a single level of activity.
B)a budget that ignores inflation.
C)used only for fixed costs.
D)used when the mix of products does not change.

Question

Quizplus · Accepted Answer

A static planning budget is a budget that is prepared based on a single level of activity. It does not take into account any changes in activity levels or other factors like inflation or changes in the mix of products. Therefore, option A is the correct choice. Option B is incorrect because a static planning budget may or may not consider inflation depending on the assumptions made during the budgeting process. Option C is incorrect because a static planning budget can be used for both fixed and variable costs. Option D is incorrect because a static planning budget can be used even if the mix of products changes, as long as the activity level remains the same.

A Static Planning Budget Is