A budget prepared for different levels of activity is called a ________.
A) rolling budget
B) operating budget
C) flexible budget
D) static budget

Question

Quizplus · Accepted Answer

A flexible budget is designed to adjust to different levels of activity or production, while a static budget remains fixed regardless of activity levels. Rolling budgets are continuously updated and revised, while operating budgets focus on day-to-day activities and expenses. Therefore, the best choice is C - flexible budget.

A Budget Prepared for Different Levels of Activity Is Called