1. The responsibility of developing an annual budget is normally assigned to a. the CEO b. a budget committee c. board of directors d. stockholders 2. The first step in preparing a flexible budget is to a. identify the fixed and variable cost components b. prepare the budget for each activity level c. identify the relevant activity levels d. None of these are correct. 3. A budget that shows the expected results of a responsibility center for only one activity level is known as budget. a. static b. zero-based c. flexible d. single activity