Which of the following statements is correct?

A) A flexible budget is calculated for actual activity level only.
B) A static budget can be calculated for a number of activity levels.
C) A static budget is prepared for budgeted activity level only.
D) Both A and C

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, making it more useful for controlling costs and planning.

Static Budget

A fixed budget that does not change or adjust to variations in sales volumes or business activity levels throughout the period.

Activity Levels

Various measures of operations or production quantity, such as units produced or hours worked, which can impact costs and managerial decisions.