A ________ type of budget allows resource allocations to vary with the level of activity.
A) project
B) flexible
C) fixed
D) zero-based

Question

Quizplus · Accepted Answer

A flexible budget allows for changes in resource allocations based on changes in the level of activity. This type of budget is often used in situations where the level of output or sales is uncertain, such as in a rapidly changing market or during a period of economic instability. A project budget is designed for a specific project or initiative, a fixed budget allocates a fixed amount of resources regardless of the level of activity, and a zero-based budget requires justification for every expense item rather than basing the budget on prior periods or assumptions.

A ________ Type of Budget Allows Resource Allocations to Vary