Which of the following is TRUE regarding a static budget?

Question

Quizplus · Accepted Answer

A static budget is a budget prepared for a single level of sales activity, typically at the beginning of the budget period. It does not change even if the actual sales activity during the period is different from the budgeted level. Hence, option B is correct. Option A is incorrect as a flexible budget is adjusted for changes in sales activity. Option C is partially correct as a static budget can stay the same for a specific period but not always. Option D is incorrect as a static budget and a fixed budget are not the same.

Which of the Following Is TRUE Regarding a Static Budget