Which statement best describes fixed vs flexible budgets for prospecting, with an example?

Which statement best describes fixed vs flexible budgets for prospecting, with an example?

• A. Flexible budget adjusts with activity levels; fixed budget stays constant.
• B. Fixed budget stays constant; flexible budget adjusts with activity levels (e.g., ad spend tied to lead volume).
• C. Both budgets adjust identically with seasonality
• D. Flexible budgets ignore lead volume

Answer: (B)