Q172
Master budget, which is based on planned output level at start of budget period is considered as
A.
static budget
AnswerB.
varied budget
C.
marketing budget
D.
methodological budget
Answer: Option A
Solution
Answer: Option A
Solution:
Master budget, which is based on planned output level at start of budget period is considered as static budget. A static budget is a budget in which the amounts will not change even with significant changes in volume. In contrast to a static budget, a company's sales department might have a flexible budget. In the flexible budget, the sales commissions expense budget would be stated as a percentage of sales.