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hi, need also to know difference,flexed budget snd functional budget.
Function is section of an orgination such as sale, production , marketing etc which has its own discrete activity. when a budget is prepared for a specific function it is called functional budget. This budget contain policies regard to that specified function and performance evaluation criteria.
flexible budget simply another budget then original e.g original budget is based on 1000 units we simply make another budget based on suppose 1200 units which we name as flexible and more than one flexible budget can be made at different output. The flexed budget is that in which we change the budget based on actual output . Any correction will be appericiated!- Topics: 0
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@abdulwahabsiddiq exactly.
@joelim and kanzaire preparing functional budget is part of budgetary planning system,we prepare functional budget and only then we are able to prepare master budget.Flexible budget is also prepared at the planning stage,at the end of the period,this flexible budget will be flexed(ie.change the output to actual output) for budgetary control.
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