A fixed budget
A) allocates a stated amount of resources for a specific purpose.
B) allocates resources as if each budget were brand new.
C) allows resources to vary in proportion with various levels of activity.
D) allocates resources like labour, equipment, and space.
E) always has equal expenditures and revenue.

Question

Quizplus · Accepted Answer

A fixed budget allocates a specific amount of resources for a specific purpose, and it does not change even if the actual activity level differs from the budgeted level.

A Fixed Budget