Answer (D) is correct . If an unchanged master budget is used continuously throughout the year for comparison with actual results, it must be a static budget, that is, one prepared for just one level of activity.
Answer (A) is incorrect because A flexible budget can be used in conjunction with standard costs to provide budgets for different activity levels.
Answer (B) is incorrect because A capital budget concerns only long-term investments.
Answer (C) is incorrect because A?zero-base budget is one that requires its preparer to fully justify every item in the budget for each period.
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