The primary difference between a static and flexible budget is:
A) The level of output used to derive the budgeted amounts.
B) That static budgets are only prepared at the level of the investment center.
C) That static budgets are prepared for publication in external annual reports while flexible budgets are only internal documents.
D) That the flexible budget is always prepared on a rolling basis.

Question

Quizplus · Accepted Answer

The primary difference between a static and flexible budget lies in the level of output used to derive the budgeted amounts. A static budget is based on a single, predetermined level of output, while a flexible budget adjusts for various levels of output.

The Primary Difference Between a Static and Flexible Budget Is