Q.
1
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A
A flexible budget considers only variable costs but a static budget considers all costs.
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B
Flexible budgets allow management latitude in meeting goals, whereas static budget is based on fixed standards.
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C
A flexible budget is applicable for a single department only but a static budget for entire production facility.
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D
A flexible budget can be prepared for any production level within a relevant range but a static budget is based on one specific level of production.