A budget developed for a single level of activity is called a(n)
A) continuous budget.
B) incremental budget.
C) static budget.
D) flexible budget.

Question

Quizplus · Accepted Answer

A budget developed for a single level of activity is called a static budget. This type of budget is prepared in advance and is based on a fixed level of activity. It is not adjusted to reflect changes in activity levels, which can result in variances between actual and budgeted results. Continuous budgets, incremental budgets, and flexible budgets all reflect changes in activity levels, and are not developed for a single level of activity.

A Budget Developed for a Single Level of Activity Is