TB MC Qu$.16-34($Static$)$ The basic difference between a master budget...

The basic difference between a master budget and a flexible budget is that a:

Multiple Choice

master budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range.

master budget is for an entire production facility but a flexible budget is applicable to single departments only.

flexible budget allows management latitude in meeting goals whereas a master budget is based upon a fixed standard.

flexible budget considers only variable costs but a master budget considers all costs.