The Primary Difference Between a Static Budget and a Flexible

Multiple Choice

The primary difference between a static budget and a flexible budget is that a static budget

A) is suitable in volatile demand situation while flexible budget is suitable in a stable demand situation.
B) is concerned only with future acquisitions of fixed assets, whereas a flexible budget is concerned with expenses that vary with sales.
C) includes only fixed costs, whereas a flexible budget includes only variable costs.
D) is a plan for a single level of production, whereas a flexible budget can be converted to any level of production.