Vidyalelo
Commerce · Q1166

Costing

Graduate and Post Graduate · Commerce · question 1166

Q1166

What is the basic difference between a static budget and a flexible budget?

A.
A static budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range
Answer
B.
A static budget is for an entire production, but a flexible budget is applicable only to a single department
C.
Flexible budget allow management latitude in meeting goals, where as a static budget is based on a fixed standard
D.
A flexible budget considers only variable costs, but a static budget considers all costs

Answer: Option A

Solution

Answer: Option A
No explanation is given for this question Let's Discuss on Board