Flexible Budgets

A flexible budget is a budget statement that shows what the expected costs should have been for any level of output, so that the actual costs can be compared to planned costs for the output that was actually generated. In a flexible budget, the costs are separated into variable and fixed costs. The more information that is provided to explain variances in budgeted and actual amounts, the easier it is for management to make successful decisions about costs and expenses.
A flexible budget classifies budget requests by activity and estimates the benefits arising from each activity. It presents a statement of expectations for a period of time but does not present a firm commitment. It also presents the plan for only one level of activity and does not adjust to changes in the level of activity. However it presents the plan for a range of activity so that the plan can be adjusted for changes in activity levels.
Flexible budgets are one way companies deal with different levels of activity. A flexible budget provides budgeted data for different levels of activity. Another way of thinking of a flexible budget is a number of static budgets. The information is used for planning and control purposes. The flexible budget responds to changes in activity, and performance evaluation. The flexible budget uses the same selling price and cost assumptions as the original budget.

Variable and fixed costs do not change categories. The variable amounts are recalculated using the actual level of activity, which in the case of the income statement are sales units. Each flexible budget line will be discussed separately. In conclusion budgets are complicated and complex tools. Within a budget there are many specific budgets which have to be examined separately. Flexible budgets helps companies set up strategy to assist in predicting positive outcomes for the business.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more