Static or flexible budget?
Exercise and reference answers
- Left
- Static
- Items
- Item
- One fixed volume
- Answer
- Static
- Item
- Many unit levels
- Answer
- Flexible
- Item
- No units stated
- Answer
- Static
- Item
- A menu of budgets
- Answer
- Flexible
- Item
- Fits actual units
- Answer
- Flexible
- Item
- Vague assumptions
- Answer
- Static
- Item
- Same at any volume
- Answer
- Static
- Item
- Columns per volume
- Answer
- Flexible
- Right
- Flexible
- Instructions
- Swipe left for the static budget, right for the flexible one.
Explanation
_Source: Jonick, Principles of Managerial Accounting, section 7.3 Flexible Budget_