What is the primary difference between a static budget and a flexible budget?

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Business

Jaylee Chambers

1 October, 02:18

What is the primary difference between a static budget and a flexible budget?

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Araceli Robbins · Answer 1

The fundamental differences between static and flexible budgets are that a static budget does not change as volume changes whereas a flexible budget changes line values to reflect the level of activity. In a flexible budget the percentage remains the same while the values change to reflect changes in output.