Budgetary Planning and Control 19

19. The difference between a fixed budget and a flexible budget is:

A. A fixed budget assumes a given level of production and sales and a flexible budget can accommodate different levels of production

B. A fixed budget considers fixed costs only, a flexible budget considers fixed and variable costs of production

C. A fixed budget is for a single department, a flexible budget covers a range of departments and units

D. A fixed budget is modified annually, a flexible budget is modified monthly