Static Budget

Static Budget can be defined as the budget which never changes irrespective of the actual result. For example: If the operating expense goes above fixed amount then also this budget will not change.

Static can be used to measure the performance of the salesperson. Let’s take an example: For the month of May 2018 sales revenue set to 5 lakhs but the salesperson generated 7 lakhs of revenue, so the performance rate is good but the budget will not change.

Sometimes static is used as variance analysis method. It used to map the variance between the actual result and the expected result.