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BUDGETING

This topic has 3 replies, 3 voices, and was last updated 1 year ago by John Moffat.

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July 25, 2021 at 9:48 pm #629413
Rav42017@
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Good day Sir,
Please explain the difference between fixed and flexible budgets, and state when each should be used to control cost.
Thank you
July 26, 2021 at 8:09 am #629445
John Moffat
Keymaster
- Topics: 57
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The fixed budget is the original budget and is used for planning.
The flexed budget is the budget rewritten for the actual level of activity and is used for comparison with the actual results in order to control costs.
This is all explained in my free lectures on budgeting and on variance analysis. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well 🙂
July 30, 2021 at 3:25 am #629807
johnbriane
Member
- Topics: 170
- Replies: 160
How will the fixed budget aid is in planning sir
Can you please give an example please
July 30, 2021 at 10:06 am #629838
John Moffat
Keymaster
- Topics: 57
- Replies: 51543
Budgets are plans, and I give examples in my free lectures on budgeting. For example, the raw materials budget is a plan for how much material they will need to purchase.
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