A fixed budget:
A. Assumes that volumes do not fluctuate so that you get the same variable expenses in each accounting period.
B. Means that department managers are expected to develop only parts of the budget.
C. Assumes that volumes do fluctuate and variable expenses increase and decrease during the accounting period based on your volume.
D. Means the budget is dictated to the department heads by senior or executive management.
Answer: A Source Finance 1 Power Point Slide 51.