Fixed / Flexed / Flexible Budgets

This topic has 3 replies, 3 voices, and was last updated 4 years ago by John Moffat.

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September 26, 2021 at 4:57 pm #636532
Syed Ahsan Ali
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Could you plz help me understand these three methods of budgeting:

1) Fixed Budget
2) Flexed Budget
3) Flexible Budget

Please tell me the difference between all of these methods. I appreciate your help 🙂
September 27, 2021 at 8:26 am #636556
John Moffat
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The fixed budget is the original budget.

The flexed budget is the original budget adjusted for the actual level of activity.

A flexible budget is one designed so as to be easily flexed (so with variable and fixed costs identified separately).

All of this is explained in my free lectures!
October 1, 2021 at 9:04 am #636805
shaunak22
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QUESTION – flexible budgets enable actual results to be compared with expected results same volume of activity -true or false

in the (bpp exam kit) the answer is true.

DOUBTS – Sir Doesn’t FLEXED enable actual results to be compared with expected results same volume of activity? so should’t the answer be false ?

reference – BPP EXAM KIT JUNE 2021 QUESTION NO 175
October 1, 2021 at 4:16 pm #636828
John Moffat
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It is true.

A flexible budgets enables a flexed budget to be prepared and therefore enables the actual results to be compared with expected results for the same volume of activity,
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