The static budget is an example of a:Multiple choice question.flexible budgetfixed budgetvariable budget

Break Down the Problem

1. Identify the types of budgets mentioned in the question: flexible budget, fixed budget, and variable budget.
2. Determine the characteristics of each budget type to find the correct answer.

Relevant Concepts

1. Fixed Budget: A budget that remains the same regardless of changes in production levels or sales volume.
2. Flexible Budget: A budget that adjusts according to changes in sales volume or production levels.
3. Variable Budget: Typically refers to costs that change in proportion to the level of activity or volume.

Analysis and Detail

1. A static budget, also known as a fixed budget, is set for a specific level of output and does not change, regardless of changes in revenue or activity levels.
2. Unlike a flexible budget, which adapts based on actual performance and activity levels, a static budget does not provide this flexibility.

Verify and Summarize

Given the definitions, it is clear that a static budget aligns with the characteristics of a fixed budget. Thus, the correct answer is that a static budget is a type of fixed budget.

Final Answer

The static budget is an example of a: fixed budget.