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1. The static budget is based on an estimated level of sales volume that was determined at
the beginning of an accounting period.
the end of an accounting period.
at any point during the accounting period.
in the year a company starts its operations.
2. A flexible budget is prepared using
the same sales price per unit that was used to prepare the static budget.
a different amount of expected sales volume than was used to prepare the static budget.
the same variable cost per unit that was used to prepare the master budget.
All of the answers are correct.
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