Static Budgets - Example: Retail Store A retail store with a consistent product line and stable monthly sales could benefit from a static budget. For instance, consider a clothing boutique with a fixed inventory and a relatively constant customer base. In such a scenario, the store's management can develop a static budget based on average monthly sales, fixed costs, and projected expenses. The fixed nature of the budget simplifies planning and provides a straightforward basis for performance evaluation. It allows the business to compare planned figures against actual results, facilitating the identification of variances. However, the static budget may prove less effective if the retail environment becomes more dynamic due to changing consumer trends or economic fluctuations