The only difference between the static budget and the flexible budget is that the static budget is prepared for the planned output of units,whereas the flexible budget is based on the actual output of units.

Question

Quizplus · Accepted Answer

A static budget is prepared for a specific level of output, and it does not change even if the actual output varies. On the other hand, a flexible budget adjusts based on the actual level of output, making it more useful for performance evaluation as it can reflect the costs associated with the actual level of activity.

The Only Difference Between the Static Budget and the Flexible