Question: What is the primary difference between a fixed budget and a flexible budget? a. The fixed budget contains only fixed costs, while the flexible budget

What is the primary difference between a fixed budget and a flexible budget?

a. The fixed budget contains only fixed costs, while the flexible budget contains only variable costs.

b. The fixed budget is adjusted for different activity levels, while a flexible budget is prepared for a single level of activity.

c. The fixed budget is prepared for a single level of activity, while a flexible budget is adjusted for different levels of activities.

d. The fixed budget is prepared at the end of a period, while a flexible budget is prepared at the beginning of a period.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock