A static budget is one that
A)is based on the actual sales volume achieved during the period.
B)is developed for a single level of expected output.
C)is one component of the operating budget.
D)is always used to compare with the actual results.

Question

Quizplus · Accepted Answer

A static budget is developed for a single level of expected output and does not change with changes in activity levels or actual results. It is typically used to plan and control costs for a specific period, such as a month or a year. It is not based on actual sales volume or used for comparison with actual results. It is a component of the operating budget, which also includes flexible budgets and variance analysis.

A Static Budget Is One That