The correct answer is: B. Fixed budget
A fixed budget is a budget that is designed to remain unchanged irrespective of the volume of output or turnover attained. It is based on the assumption that the level of activity will remain constant throughout the budget period. This type of budget is often used by businesses that have a stable level of activity, such as utilities or public utilities.
A master budget is a comprehensive budget that includes all of the major financial statements for a company, such as the income statement, balance sheet, and cash flow statement. It is typically prepared for a one-year period, and it is used to guide the company’s financial planning and decision-making.
A flexible budget is a budget that is adjusted to reflect changes in the level of activity. It is based on the assumption that the costs of a business will vary with the level of activity. This type of budget is often used by businesses that have a variable level of activity, such as manufacturing companies.
Therefore, the correct answer is: B. Fixed budget.