1. The basic difference between a flexible budget and fixed budget is that a fixed budget: a) Is concerned with fixed expenses whereas flexible budget is on different activity levels. b) Cannot be changed whereas flexible budget can be easily changed. c) Is a budget for single measure of activity whereas flexible budget is on different activity levels. d) None of the above 4 Ans: c) Is a budget for single measure of activity whereas flexible budget is on different activity levels. 2) A flexible budget requires careful study and classification of expenses into: a) Past and current expenses b) Fixed, Semi-variable and variable expenses c) Administrative, selling and factory expenses d) None of the above Ans: b) Fixed, Semi-variable and variable expenses

1. The basic difference between a flexible budget and fixed budget is that a fixed budget: a) Is concerned with fixed expenses whereas flexible budget is on different activity levels. b) Cannot be changed whereas flexible budget can be easily changed. c) Is a budget for single measure of activity whereas flexible budget is on different activity levels. d) None of the above Ans: c) Is a budget for single measure of activity whereas flexible budget is on different activity levels. 2) A flexible budget requires careful study and classification of expenses into: a) Past and current expenses b) Fixed, Semi-variable and variable expenses c) Administrative, selling and factory expenses d) None of the above Ans: b) Fixed, Semi-variable and variable expenses