What is the difference between a static budget and a flexible budget? A - The static budget is based on the level of output planned at the start of the budget period, it is called a static budget because the budget is developed around a single planned output level. A flexible budget calculates budgeted revenues and budgeted costs based on the actual output in the budget period. Instructors Q - So given these differences, how will the budgets vary, for example? Criteria If outside of our textbook, please provide your source or reference. Reference - Horngren, C. T., Datar, S.M., Foster, G., Rajan, M., & Ittner, C. (2009). Cost Accounting: A Managerial Emphasis (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall, pp 226-228