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Dear Sir!
Could you tell me please: what is the defference between flexed and flexible budget?Thanks,
ZhenyaA flexed budget is when the budget is rewritten for the actual level of activity.
A flexible budget is one that is prepared for several different levels of activity.
Quite honestly they are more or less the same thing 🙂
Dear John,
Could you, please, elaborate on that topic? I really need to know the difference.The difference between a flexed budget and a flexible budget lies in their definitions and purposes.
A flexible budget is a budgeting approach that is prepared at the beginning of a budget period and is designed to accommodate variations in activity levels.
It provides estimates of revenues, costs, and profits based on different levels of activity. In other words, a flexible budget is created to reflect the expected costs and revenues across a range of activity levels.
On the other hand, a flexed budget is a revised version of the original budget that has been adjusted to reflect the actual level of activity achieved during a given period.
It takes into account the actual activity level and incorporates changes in activity levels to provide more accurate performance evaluation and analysis.
In essence, a flexed budget is the original budget that has been flexed or adjusted to align with the actual level of activity.
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