The main difference between a static and flexible budget is that Multiple Choice static budget is prepared for a single level of activity while a flexible budget can be flexed for different activity levels. static budget is more useful for performance measurement purposes. static budget is constructed using standard costs while the flexible budget uses a zero- based approach. static budget is used in the service Industry while flexible budget is used for manufacturing sector only. The flexible budget variance is caused by the difference in the sales volume between budgeted and actual activity