Problem: Why is a STATIC budget less useful than a FLEXIBLE budget? A static budget compares the actual cost this year to the actual cost last year. A static budget compares the actual cost to the budgeted cost (based on the actual level of production). A static budget compares the budgeted cost this year to the budgeted cost last year. A static budget compares the actual cost to the budgeted cost (based on the budgeted level of production).