A Static Budget is a budgeting method which is used by businesses to plan and forecast their future financial activities. It is based on historical data and established estimates, and it is designed to keep expenses within predetermined boundaries. This type of budget is especially useful for businesses that do not experience considerable fluctuations in their spending patterns, as the budgetary goal remains fixed throughout the year regardless of how actual performance progresses. By accounting for seasonal variations, unexpected costs or revenue sources, and other unforeseen events, businesses can better predict the financial needs and make more informed decisions when it comes to allocating resources.