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:

Achieve Timelessness

The act or process of creating something that remains relevant and valued over a long period, transcending trends and generations.

Cues/Codes

Signals or symbols used in communication to convey messages or meanings effectively.

Cognitive-behavioral

A therapeutic approach focusing on modifying dysfunctional emotions, behaviors, and thoughts through a goal-oriented, systematic process.

Phases

Different stages or steps in a process or cycle, often used to describe the progression through therapy or a project.