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What is the primary difference between a static budget and a flexible budget? The static budget is prepared only for units produced, while a flexible budget reflects the number of units sold. The static budget is constructed using input from only upper level management, while a flexible budget obtains input from all levels of management. The static budget contains only fixed costs, while the flexible budget contains only variable costs. The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels..

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What is the primary difference between a static budget and a flexible budget? The static budget is prepared only for units produced, while a flexible budget reflects the number of units sold. The static budget is constructed using input from only upper level management, while a flexible budget obtains input from all levels of management. The static budget contains only fixed costs, while the flexible budget contains only variable costs. The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels.

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  • 1. What is the primary difference between a static budget and a flexible budget? The static budget is prepared only for units produced, while a flexible budget reflects the number of units sold. The static budget is constructed using input from only upper level management, while a flexible budget obtains input from all levels of management. The static budget contains only fixed costs, while the flexible budget contains only variable costs. The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels.