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Hi again Dear Tutor.
FIxed budget is used for planinng and usually prepared at the planning stage
Flexible budget is useful at the planning stage but used for control purposes.
Flexed budget is used at the conrol stage does it mean usually actual results we have got?
A flexible is designed at the planning stage but also useful for control purposes
Purpose of flexed/flexible
Useful at planning stage
Useful for control device
What you have written is correct except for the fact that the flexed budget is not the actual results – it is the budget as rewritten for the actual level of activity (i.e. actual level of sales and of production).
See my lectures working through example 2 of Chapter 11 of our free lecture notes.
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