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The Difference Between a Fixed Budget and a Flexible Budget

Question 15

Multiple Choice

The difference between a fixed budget and a flexible budget is:


A) A fixed budget assumes a given level of production and sales and a flexible budget can accommodate different levels of production
B) A fixed budget considers fixed costs only, a flexible budget considers fixed and variable costs of production
C) A fixed budget is for a single department, a flexible budget covers a range of departments and units
D) A fixed budget is modified annually, a flexible budget is modified monthly

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