Static and flexible budgets are similar in that: Multiple Choice

a. They both are prepared for multiple activity levels.

b. They both are based on the same per unit variable amounts and the same fixed costs.

c. None of these answers is correct.

d. They both concentrate solely on costs.

Question

Golden Graham

Business

13 April, 11:51

Static and flexible budgets are similar in that: Multiple Choice

a. They both are prepared for multiple activity levels.

b. They both are based on the same per unit variable amounts and the same fixed costs.

c. None of these answers is correct.

d. They both concentrate solely on costs.

+2

Answers (1)

Know the Answer?

Valentino Gallagher · Answer 1

The correct answer is letter "B": They both are based on the same per unit variable amounts and the same fixed costs.

Explanation:

Static budgets are estimates that use the same fixed cost amounts, while flexible budgets change the number of fixed costs at different levels of production. However, both of them use the same per unit variable amounts as well as the same fixed costs in the manufacturing process.

Static and flexible budgets are similar in that: Multiple Choicea. They both are prepared for multiple activity levels.b. They both are based on the same per unit variable amounts and the same fixed costs.c. None of these answers is correct.d. They both concentrate solely on costs.

Static and flexible budgets are similar in that: Multiple Choice

a. They both are prepared for multiple activity levels.

b. They both are based on the same per unit variable amounts and the same fixed costs.

c. None of these answers is correct.

d. They both concentrate solely on costs.