a set of budget relationships that can be used to prepare budgets for various activity levels
a special budget that is used to compare what actually happened to what should have happened, based on the amount of sales (or units sold)
A budget that provides alternative sets of budget estimates to use under the different circumstances that may arise during an accounting period. Also known as dynamic budget and variable budget.
A budget that flexes with volume. Under a flexible budget the budgeted amount of manufacturing overhead will increase if the company produces more units than planned. The flexible budget will decrease if the company actually produces fewer units than planned. To Top
This budget postulates a varied business operating scenarios in their financial planning and targets, taking into account different levels of output. Such approach can facilitate evaluation of performance in a relatively more flexible manner.
