Static budgets are prepared on quarterly basis and require frequent change during the annual budget period.

Question

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Static budgets are prepared for a specific period of time, usually a fiscal year, and remain unchanged throughout that period. They are not meant to be altered frequently but rather serve as a benchmark for comparison to actual results. Flexible budgets, on the other hand, can be adjusted based on changes in activity levels, such as sales volume or production output.

Static Budgets Are Prepared on Quarterly Basis and Require Frequent