Question: 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

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 with only further acquisitions of fixed costs, 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 measures of activity).

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