A static budget provides a measure of the effectiveness of a manager, whereas a flexible budget provides a measure of the efficiency of a manager.

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A static budget is based on a single level of activity, while a flexible budget is based on multiple levels of activity. This means that a flexible budget can provide a more accurate measure of a manager's efficiency, as it takes into account the actual level of activity that was achieved.

A Static Budget Provides a Measure of the Effectiveness of a Manager