Choice "B" is correct. A static budget is based on costs at one level of output. Static budgets thus include budgeted costs for budgeted output. They are not based on or adjusted for actual performance.Choice "c" is incorrect. Actual costs for actual output represent actual activity, not budget.Choice "d" is incorrect. Actual cost for budgeted output would not be computed as part of static budget.Choice "a" is incorrect. Budgeted costs for actual output are the basis for flexible budget computations and would not be part of a static budget.
