Flexible budget, Flexed and fixed budget

KKanan5y ago

Hi again Dear Tutor. FIxed budget is used for planinng and usually prepared at the planning stage Flexible budget is useful at the planning stage but used for control purposes. Flexed budget is used at the conrol stage does it mean usually actual results we have got? A flexible is designed at the planning stage but also useful for control purposes Purpose of flexed/flexible Useful at planning stage Useful for control device

John MoffatTutor5y ago#1

What you have written is correct except for the fact that the flexed budget is not the actual results - it is the budget as rewritten for the actual level of activity (i.e. actual level of sales and of production). See my lectures working through example 2 of Chapter 11 of our free lecture notes.