# A Static Budget

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January 5, 2012 Case Assignment 3 The school budget is static as it assumes fixed costs for the expenses. A staticÂ budgetÂ is generally used as a projection tool for estimating business expenses within a given period of time. Discrepancies resulting from the fluctuating cost of commodities or initial budgeting errors appear on a static budget as static budget variance. When accounting for the end of a budget cycle's actual expenses, the static budget variance needs to be combined with the actual initial static budget in order to achieve accurate financial reporting. For simplicity, it can help to think of a static budget as a projection budget. Total revenue per student is \$6,688 assuming 120 students, \$6,813 assuming 100 students and \$7,199 assuming 66 students. Total expense per student is \$4,518 assuming 120 students, \$5283 assuming 100 students and \$7646 assuming 66 students. It appears that a number of expenses are non-essential and therefore unnecessary. Examples of possible programs to cut entirely to save money would be field trips and technology enhancement and programs which could potentially be reduced to save money would be advertising, computer equipment and staff development depending on their effect on overall school income. Based on Revenue Less Expenses the school is viable at 100 and 120 students and loses money at 66. To break even the school must enlist 72 students. Calculations: Based on Revenue-Expenses, 20 students generate \$107,371 (the