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Could you plz help me understand these three methods of budgeting:
1) Fixed Budget
2) Flexed Budget
3) Flexible BudgetPlease tell me the difference between all of these methods. I appreciate your help 🙂
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!
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
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