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    Question

    A budget that is prepared based on a single level of

    activity is known as a:
    A Flexible Budget Correct Answer Incorrect Answer
    B Static Budget Correct Answer Incorrect Answer
    C Rolling Budget Correct Answer Incorrect Answer
    D Cash Budget Correct Answer Incorrect Answer
    E Master Budget Correct Answer Incorrect Answer

    Solution

    A Static Budget, also known as a Fixed Budget, is prepared for a single, planned level of activity. It does not change with actual changes in activity levels. A Flexible Budget (A), in contrast, is designed to change with the volume of activity.

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