Budget is a task which is performed for controlling the overall planning and oth

Question

Budget is a task which is performed for controlling the overall planning and other purposes of an organisation. Budgeting process allows an organisation to identify and set the objectives as well as goals.

Flexible budget

Flexible budget can be defined as a budget which is located at its actual capacity. Flexible budget is totally dynamic and it can be computed by a different softwares such as Excel spreadsheets. For determining this type of a specific budget, relevant activity range is directly determined for the specific coming period. Cost that could occur above the relevant range are also analysed and then these overall cost directly separated on the basis of their specific coastal behaviour. Fixed as well as variable and mixed type of budget is created for the variable cost at specifically different points out all the available relevant range. We can say that flexible budget directly matches the overall expenses to the specific revenue levels are the activities which are implemented into budgeting level.

this type of budget is very flexible and provides extensive ability to directly reduce the overall effect of the fragile budgeting system which could be very beneficial for the organisational structure. This flexible budgeting system is better than other budgeting system as it provide an extensive benefit over flexibility of the multiple budgeting factors.
As compared to the static budgeting method, it is very flexible and provides better flexibility and control over different factors.

Explanation / Answer

2. Pick a budget type and discuss when and how it might be better than another type of budget?

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