Static budgets
A) I and III only
B) II and III only
C) I and II only
D) I, II, and III

Question

Static budgets 
A) I and III only 
B) II and III only 
C) I and II only 
D) I, II, and III

Quizplus · Accepted Answer

Static budgets are prepared in advance and are fixed, which means that they do not change with actual results. I is incorrect because static budgets are not adjusted for actual results, making them inflexible. On the other hand, II is correct because static budgets are created based on a specific level of activity or production, making them suitable for planning and forecasting. III is also correct because static budgets are not used for performance evaluation because they do not reflect actual results.

Static Budgets