The correct answer is: D. Flexible budget.
A flexible budget is a budget that is prepared in a manner so as to give the budgeted cost for any level of activity. It is a type of budget that is designed to be responsive to changes in the level of activity. A flexible budget is prepared by taking the fixed costs and the variable costs and multiplying them by the budgeted level of activity. The fixed costs will remain the same regardless of the level of activity, but the variable costs will change in proportion to the level of activity.
A master budget is a comprehensive budget that includes all of the major budgets of an organization. It is a financial plan that outlines the organization’s goals and objectives for the upcoming year. The master budget is typically prepared on a monthly or quarterly basis.
A zero-base budget is a budget that is prepared from scratch each year. It requires managers to justify all of their expenses, regardless of whether they were approved in the previous year’s budget. Zero-base budgeting is designed to eliminate waste and inefficiency in an organization.
A functional budget is a budget that is prepared by department or function. It is a detailed budget that shows the expected revenues and expenses for each department or function. Functional budgets are typically prepared for the upcoming year.