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'STATIC BUDGET'
A type of budget that incorporates anticipated values about inputs and outputs that are conceived before the period in question begins. When compared to the actual results that are received after the fact, the numbers from static budgets are often quite different from the actual results.
A static budget is a budget that is completed prior to the budget periods being forecasted and which is fixed for the entire period covered by the budget, with no changes based on actual activity i.e.it does not change as volume changes.
A static budget is a budget prepared for only one level of activity.
It is based on the level of output planned at the start of the budget period.
The master budget is an example of a static budget.
