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Commerce · Q756

Costing

Graduate and Post Graduate · Commerce · question 756

Q756

The primary difference between a fixed budget and a variable (flexible) budget is that a fixed budget:

A.
Includes only fixed costs, while a variable budget includes only variable costs
B.
Is concerned only with future acquisitions of fixed assets, while a variable budget is concerned with expenses which vary with sales
C.
Cannot be changed after the period begins, while a variable budget can be changed after the period begins
D.
Is a plan for a single level of sales (or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity)
Answer

Answer: Option D

Solution

Answer: Option D
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