The basic difference between a static budget and flexible budget is that

A. a flexible budget considers only variable costs but a static budget considers all costs

B. a flexible budgets allows management latitude in meeting goals, whereas static budget is based on fixed standards

C. a flexible budget is applicable for a single department only but a static budget for entire production facility

D. a flexible budget can be prepared for any production level within a relevant range but a static budget is based on one specific level of production

Answer: Option D