Question 1
The master budget is an example of a
◦ flexible budget.
◦ cash budget.
◦ pro-forma budget.
◦ static budget.
Question 2
A static budget is one that is
◦ based on the actual sales volume achieved during the period.
◦ developed for a single level of expected output.
◦ always used to compare with the actual results.
◦ one component of the operating budget.