Is a static budget appropriate in evaluating a manager's performance?

A static budget can be limiting when evaluating a manager's performance, as it does not account for changes in activity levels or unexpected circumstances that may arise during the budget period. It provides a fixed benchmark that may not reflect the actual conditions faced by the manager. Therefore, while it can offer some insights, a flexible budget that adjusts for actual performance levels is often more appropriate for a comprehensive assessment of a manager's effectiveness.