Question：Abbey Enterprises uses a fixed budget within its overall budgetary control process.

　　This budget is usually prepared prior to the start of the budget period.

　　Which of the following statements is not true?

　　A. A fixed budget may be changed if required by the prevailing environment.

　　B. A fixed budget is the same as the master budget.

　　C. A fixed budget is not adjusted for periodic changes in sales and production volumes.

　　D. A fixed budget is based upon the estimated fixed costs of production.

　　The correct answer is: A fixed budget is based upon the estimated fixed costs of production.

　　The fixed budget (master budget) for an organisation is based upon a particular level of activity in a period and the associated costs and revenues for that level of activity.