A fixed budget:
A) allocates a stated amount of resources for a specific purpose.
B) allocates resources as if each budget were brand new.
C) allows resources to vary in proportion with various levels of activity.
D) allocates resources like labor, equipment, and space.
E) always has equal expenditures and revenue.

Question

Quizplus · Accepted Answer

A fixed budget sets a specific amount of resources for a specific purpose, and it does not vary with changes in activity levels or revenue. It is not based on allocating resources like labor, equipment, and space nor does it always have equal expenditures and revenue.

A Fixed Budget