Question

The primary difference between a Fixed Budget and a

Q: Answer-The primary difference between a Fixed Budget and a Flexible Budget is that a Flexible Budget:

A fixed budget is static and prepared for one level of activity. A flexible budget, by definition, is designed to change flex with the volume of output or activity, enabling more meaningful performance evaluation by comparing actuals with budgeted figures for the actual level of activity achieved.

Flexible Budget is that a Flexible Budget:

A Is designed for a single level of activity

B Is adjusted to different levels of activity

C Includes only fixed costs

D Is used for long-term planning

E Cannot be used for performance evaluation

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The primary difference between a Fixed Budget and a

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