A master (static) budget: Group of answer choices drops the current month or quarter and adds a future month or quarter as the current month or quarter is completed. presents a statement of expectations for a period of time but does not present a firm commitment. presents the plan for only one level of activity and does not adjust to changes in the level of activity. presents the plan for a range of activity so that the plan can be adjusted for changes in activity levels.

Question

Business

Sergio

25 November, 20:53

A master (static) budget: Group of answer choices drops the current month or quarter and adds a future month or quarter as the current month or quarter is completed. presents a statement of expectations for a period of time but does not present a firm commitment. presents the plan for only one level of activity and does not adjust to changes in the level of activity. presents the plan for a range of activity so that the plan can be adjusted for changes in activity levels.

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Paris · Answer 1

presents the plan for only one level of activity and does not adjust to changes in the level of activity

Explanation:

A static budget refers to the budget where sums aren't going to change except with major quantity adjustments. Unlike a static master budget, the sales division of an organisation may have a dynamic budget.

The cost estimate for the selling commission will be reported as a proportion of revenue in such a flexible budget. In other words, A master budget - which is a projection of income and spending for a given time frame - appears constant even with rises or declines in levels of demand and output.