The type of budget that adjusts the budgeted costs as levels of revenue and output vary is called a

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A flexible budget adjusts the budgeted costs based on changes in levels of revenue and output, making it the best fit for this description. A static budget does not change and is not adjusted for varying levels of revenue and output. A participatory budget involves input from various departments or individuals within an organization, but does not necessarily adjust for changes in revenue or output. A zero-based budget requires all expenses to be justified from scratch each budget period, but may not necessarily be adjusted for changes in revenue or output.

The Type of Budget That Adjusts the Budgeted Costs as Levels