Fixed budget performance reports compare actual results with the results expected under a fixed budget. A) True B) False

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06-12-2022
Business

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Fixed budget performance reports compare actual results with the results expected under a fixed budget. A) True B) False

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-12-08T22:04:52-05:00

The answer is true. A fixed budget is a financial plan that is not adjusted to reflect fluctuations in actual activity. They are the most common type of budget because they are easier to create than flexible budgets.

A fixed budget is a budget that does not change with changes in activity or output levels. A variable budget is a budget that fluctuates depending on the unit's activity level and production volume. A flexible budgets is static and never changes. Fixed budgets can be used for projects that contain fixed funds for specific programs such as capital expenditures, advertising and promotions, and major refurbishments.

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