WebJan 12, 2024 · The flexed budget for 2,000 units would give a budgeted energy cost of £5,700 (£500 fixed + £5,200 variable). Compared to actual cost of £7,400 we can derive … WebApr 11, 2016 · The following are the major differences between fixed budget and flexible budget: The budget, which remains constant, regardless of the actual output levels is known as Fixed Budget. Flexible budget, is a budget which can be easily adjusted according to the output levels. Fixed Budget is static in nature while Flexible Budget is …
Difference between fixed and flexible budget - api.3m.com
WebFlexible Budget Q.8Business Management Flexible BudgetFixed and flexible Budgetb.com final yearb.com final year flexible Budgetimportant question of flexible... WebManagement can take different approaches to the budget process. By nature or characteristics budgets can be divided into two categories: Fixed budgets and Flexible budgets. By budgeting approach, a budget can be categorized into four broad categories: Incremental budgets. Zero-based budgets. Activity-based budgets. note ankhi
The Advantages of Using a Flexible Budget vs. a Static Budget
WebJul 16, 2024 · A flexible budget requires more attention than a fixed one, but in the long run will be worth it. With a flexible budget you can shift your spending around in case of a fender bender or have a ... WebAnswer: 1. A fixed budget is established for a specific level of activity whereas flexible budget is prepared for various levels of activity. 2. Fixed budget cannot be changed after the period commences, whereas a flexible budget … WebThe fixed budget is very simplistic. A flexible budget is pretty complicated. The fixed budget takes comparatively little time to prepare. On the other hand, a flexible budget takes a lot more time. A fixed budget is estimated on the past data and management’s … Fixed cost + (actual unit of activity x variable cost per unit of activity) … Zero-Based Budgeting Advantages. It has the following advantages: Profit Centric: … The forecast has some flexibility, whereas the budget has a fixed target. Generally, … Differences Between Traditional and Zero-Based Budgeting. Traditional budgeting … Standard costing, as the name suggests, considers a standard cost for all direct … how to set default browser in mobile