4. What is the primary difference between a static budget and a flexible budget? a. The static budget contains only fixed costs, while the flexible budget contains only variable corns. b. The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels. c. The static budget is constructed using input from only upper level management, while a flexible budget obtains Snout flan all levels of management. d. The static budget is prepared only for units produced, while a flexible budget reflects the number of units sold. 5. A responsibility center in which a manager is accountable for expense only is called an (a) a. investment center b. revenue center c. profit center d. cost center 6. Davis Company has beginning inventory of 21,000 units and expected sales of 48.000 units. if the desired ending inventory is 15,500 units, how many units should be produced? a 27,000 b. 42,500 c. 53,500 d. 45,000 7. Morrison Company has the following budgeted sales: January $80,000, February $120,000, and March $100,000.40% of sales arc for cash and 60% are on credit For the credit sales. 50% are collected in the month of sale, and 50% is collected the following month. The total expected collections from credit sales during March arc: a. $112,000 b. $106,000 c. $105,000 d. $66,000