What are Flexible Budgets? A flexible budget is a budget or financial plan of estimated cost and revenue for different output levels. The variation happens due to the change in the volume or level of activity. It sets the standard to measure the variances of the budget estimates and the actu...
This is why it’s often called a variable budget. Management often uses flexible budgets before a period to predict both a best case and worse case scenario for the upcoming accounting period. This provides a “what if” look at the future of the company’s financial performance....
Which of the following is a true statement regarding the purpose of flexible budgets? a. Flexible budgets are also known as static budgets. b. They are budgets that are developed at the start of the year and never adjusted. c. They are of no us...
How are flexible budgets more helpful vs. static or planning budgets? Explain the difference between a static budget and a flexible budget. Explain, what is meant by a static budget variance and flexible budget variance. What are the differences between a flexible budget and a ...
Crispety-I think that a static budget vs. a flexible budget are different in many ways, but both of these types of budgets need to be taken into consideration in order to pay fixed expenses and have additional funds for unexpected expenses. ...
Flexible Budgets Could Flex for Various Activities The activities that could cause flexible budgets to flex might be the amount of sales, units of output, machine hours, miles traveled, etc. Related Questions What is a flexible budget? What is a static budget? What is a fixed budget? Wh...
What is a fixed budget? What is a flexible budget? What are the benefits of a revenue budget? What is the meaning of a favorable budget variance? Related In-Depth Explanations Evaluating Business Investments Financial Accounting Improving Profits Mark the Question as Read Advance...
There are three common types of social media budgets: Traditional budget: This is where you start with a sum of money and then allocate amounts to each category. Once a category is depleted, you can’t move other funds into it. This type of budgeting requires careful and detailed ...
Understanding a Flexible Expense Whenfinancial advisorscounsel individuals, they routinely ask them to estimate their expenses, separating those that are necessary and non-negotiable, likemortgageand car payments, and those that are flexible, like entertainment costs. Entertainment costs can usually be bro...
There are two major types of budgets:static budgetsand flexible budgets. A static budget remains unchanged over the life of the budget. Regardless of changes that occur during the budgeting period, all accounts and figures originally calculated remain the same. ...