The static budget is equal to budgeted revenue and costs multiplied by budgeted volume.

Name: The static budget is equal to budgeted revenue and costs multiplied by budgeted volume.
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Question

Quizplus · Accepted Answer

A static budget is based on the level of output planned at the start of the period, and it does not change with the actual level of output or activity. It involves calculating budgeted revenues and costs based on a predetermined level of volume or activity, hence the statement is true.

The Static Budget Is Equal to Budgeted Revenue and Costs