What Is the Primary Difference Between a Static Budget and a Flexible

Multiple Choice

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

A) The static budget contains only fixed costs while the flexible budget contains only variable costs.
B) The static budget is prepared for a single level of activity while a flexible budget is adjusted for different activity levels.
C) The static budget is constructed using input from only upper level management while a flexible budget obtains input from all levels of management.
D) The static budget is prepared only for units produced while a flexible budget reflects the number of units sold.