The correct answer is: A. flexible budget
A flexible budget is a budget that is adjusted for changes in the level of activity. It is based on the assumption that costs and revenues are variable with respect to the level of activity. A flexible budget is more accurate than a fixed budget because it takes into account changes in the level of activity.
A fixed budget is a budget that is not adjusted for changes in the level of activity. It is based on the assumption that costs and revenues are fixed with respect to the level of activity. A fixed budget is less accurate than a flexible budget because it does not take into account changes in the level of activity.
A variable budget is a budget that is based on the assumption that costs are variable with respect to the level of activity. Variable costs change in proportion to the level of activity.
A multiplied budget is a budget that is based on the assumption that costs are fixed with respect to the level of activity. Fixed costs do not change regardless of the level of activity.