A flexible budget is one that can be altered in response to modifications made to the underlying assumptions used to develop it during management’s planning process. In contrast, a static budget stays the same even if there are significant deviations from the planning assumptions. The ability to adapt is a flexible budget’s biggest advantage over […]
What Is A Flexible Budget? Definition & How To Create It
First, what is a flexible budget? A flexible budget is a budget that adjusts to the activity or volume levels of a company. A flexible budget continuously “flexes” with a business’s variations in costs, as opposed to a static budget, which stays with the amounts decided upon when the budget was created. Please continue reading […]