In this type of control system, the master budget is based on a single prediction for sales volume, and the budgeted amount for each cost essentially assumes that a specific amount of sales will occur

From this statement, it can be concluded that it is an explanation of the "fixed budget". A fixed budget itself is a budget that will not be changed or will not be adjusted to developments during the fiscal year in question. This is in accordance with the above statement because it has its own specific amount and only has a single prediction, which can allow no changes to occur in the relevant fiscal year.

Further explanation

Definition of Budget

Business Budget or budget is a plan prepared systematically, which includes all company activities, which are expressed in monetary units and are valid for a certain period to come.

The following are some types of budget:

According to the basis of the preparation of the budget consists of a variable budget and fixed budget. In terms of preparation, the budget consists of periodic and continuous budgets. In terms of time, the budget consists of short-term (tactical budget) and long-term (strategic budget). According to their fields, the budget consists of the operational budget and financial budget. According to the ability to compile, the budget consists of a comprehensive budget and a partial budget. According to its function, the budget consists of appropriation budget and performance budget.

Several types of budgets above will be discussed in the following.

According to the basis of preparation, the budget consists of:

Variable budget, i.e. the budget is arranged based on a certain interval (range) of capacities (activities) and is essentially a series of budgets that can be adjusted at different levels of activity (activity). A fixed budget, that is, a budget arranged based on a certain level of capacity. A fixed budget is also called a static budget.

According to the arrangement, the budget consists of:

Periodic budget is a budget prepared for a certain period, generally, the period is one year which is compiled at the end of the budget period. A continuous budget is a budget that is made to make improvements to the budget that was made, for example, every month improvement is made so that the budget made in one-year changes.

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Budget ,

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Class: High School

Subject: Business

Keyword: Various budgets.