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.

Investopedia Says:
When the static budget is compared to other facets of the budgeting process (such as the flexible budget and the actual results), two types of variances can be derived:

1. Static Budget Variance: The difference between the actual results and the static budget

2. Sales Volume Variance: The difference between the flexible budget and the static budget

These variances are used to assess whether the differences were favorable (increased profits) or unfavorable (decreased profits).

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Fixed budget that does not allow for changes. See also Flexible Budget.

One based on a single level of activity (e.g., a particular volume of sales or production). It has two characteristics: (1) it is geared toward only one level of activity; (2) actual results are compared against budgeted (standard) costs only at the original budget activity level. A Flexible (Variable) Budget differs from a static budget on both scores. First, it is not geared to only one activity level, but rather, toward a range of activity. Second, actual results are not compared against budgeted costs at the original budget activity level. Managers look at what activity level was attained during a period and then turn to the flexible budget to determine what costs should have been at that actual level of activity.