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Flexible Budgeting

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Business

Lessons no : 6

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Lessons | 6


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Dr.Ghvs Sarma

Very Useful 2024-03-22

Anthony Hill

Good information 2024-03-20

Indhuja

Good 2024-03-13

Jayasathiya J

Nice 2024-03-12

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A flexible budget is a budget that adjusts to the activity or volume levels of a company. Unlike a static budget, which does not change from the amounts established when the budget was created, a flexible budget continuously "flexes" with a business's variations in costs.What is flexible budget example? Example of a Flexible Budget ABC Company has a budget of $10 million in revenues and a $4 million cost of goods sold. Of the $4 million in budgeted cost of goods sold, $1 million is fixed, and $3 million varies directly with revenue. Thus, the variable portion of the cost of goods sold is 30% of revenues.