A budget prepared at a single volume of activity is referred to as a
A) strategic budget.
B) static budget.
C) standard budget.
D) flexible budget.

Question

Quizplus · Accepted Answer

A budget prepared at a single volume of activity is known as a static budget. A static budget is prepared for a specified level of activity, and it does not change even if the actual activity level differs from the budgeted level. It is appropriate when the level of activity is predictable and consistent. To account for changes in activity levels, a flexible budget may be used.

A Budget Prepared at a Single Volume of Activity Is