A budget prepared using several differing levels of activity is a

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A budget that is prepared using several differing levels of activity is a flexible budget. This type of budget is capable of adjusting to changes in the level of activity, and is therefore more useful in helping managers to control costs and analyze variances. A fixed budget, on the other hand, does not adjust for changes in activity levels and may become obsolete quickly. A manufacturing cost budget is a more specific type of budget that focuses solely on the costs associated with manufacturing goods. A budget performance report is a summary of actual results compared to budgeted amounts.

A Budget Prepared Using Several Differing Levels of Activity Is