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

question 25

Multiple Choice

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.