Economics · Budgetary Control
Which of the following best describes the fundamental difference in approach between Fixed Budgeting and Flexible Budgeting?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A Fixed Budget is a financial budget, and a Flexible Budget is an operational budget.
- 2A Fixed Budget is based on a single predetermined level of activity, whereas a Flexible Budget is prepared for a range of activity levels, separating costs into fixed and variable components.✓
- 3A Fixed Budget is revised periodically (e.g., quarterly), while a Flexible Budget is never revised.
- 4A Fixed Budget is prepared only for sales, while a Flexible Budget is prepared only for production.
Correct answer
A Fixed Budget is based on a single predetermined level of activity, whereas a Flexible Budget is prepared for a range of activity levels, separating costs into fixed and variable components.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Budgetary Control MCQs →Want more practice questions on Budgetary Control?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Budgetary Control