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 :)
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Fixed / Flexed / Flexible Budgets
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4y ago#1The 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!
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
4y ago#3It 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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