Question

Differences between the static budget and the flexible budget are due to _____. Group of answer choices a combination of price and material variances problems of cost control poor usage of material and labor actual activity differing from expected activity levels

Answer 1

Answer:

The correct answer is letter "D": actual activity differing from expected activity levels.

Explanation:

A static or master budget is the estimate of expected expenses a firm outlines at the beginning of the operations of a period and remains the same during the period. A flexible budget estimates expenses over a period of operations but can be modified as many times as the operations require. The flexible budget reflects better the current activity of the organization.