question_answer

What is the basic difference between a static budget and a flexible budget?

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

B)  A static budget is for an entire production, but a flexible budget is applicable only to a single department

C)  Flexible budget allow management latitude in meeting goals, whereas a static budget is based on a fixed standard

D)  A flexible budget considers only variable costs, but a static budget considers all costs