A. Zero-based budgeting is the budgeting method in which the current year budget is prepared without any reference to, or use of, the prior period's budget. The use of this form of budgeting does not require the use of standard costs.

B. A fixed budget, or static budget, is a budget that is prepared for only one level of activity within the company. A static budget does not require the use of standard costs.

C. The capital budget is the budget in which all capital (property, plant and equipment) expenditures are planned. This budget is often prepared years in advance so that the company is able to obtain the necessary financing or accumulate the necessary cash to carry out its capital expansion plans. Although capital expansion plans that affect the budget being developed must be incorporated into that budget, there is no reason to say that use of standard costs in the budgeting process signifies that an organization has implemented a capital budget. To the extent that the capital budget is incorporated into the budget being developed, a capital budget is a part of any budget, whether it is a static budget, a flexible budget, or a zero-base budget.

D. A flexible budget is a budget that is prepared for the actual activity level achieved during the period. This is done using the standard cost per unit. Therefore, if a company is using standard costs it may indicate that they are also using a flexible budget.