The Primary Difference Between a Static Budget and a Flexible

question 113

Multiple Choice

The primary difference between a static budget and a flexible budget is that a static budget

• A) is suitable in volatile demand situation while flexible budget is suitable in a stable demand situation.
• B) is concerned only with future acquisitions of fixed assets, whereas a flexible budget is concerned with expenses that vary with sales.
• C) includes only fixed costs, whereas a flexible budget includes only variable costs.
• D) is a plan for a single level of production, whereas a flexible budget can be converted to any level of production.

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Definitions:

Simple Linear Regression

A statistical method that models the relationship between a dependent variable and one independent variable using a linear equation.

Obesity

A medical condition characterized by excessive body fat accumulation, which poses a risk to health.

Diabetes

A chronic medical condition characterized by elevated levels of blood glucose due to the body's inability to produce or properly use insulin.

Scatter Plot

A graphical representation using dots to show the relationship between two numerical variables.