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 Static Budget? Basic Definition & Meaning
First, what is a static budget? A static budget is a budget that uses predicted amounts for a given period prior to the period beginning. Static budgets are distinct in that they remain constant despite variations in income and outlays. Please continue reading so I can provide you with more specific information about what a […]