What you’ll learn to do: Outline the effects of flexible budgeting on budgetary control
In the previous section, we discussed the preparation of a master budget, which is a static budget. We now want to look at the advantages of preparing a flexible budget, since markets change, competition changes and the quantities we initially determined in our sales budget may flex over time.
Take a few minutes to watch this video before moving on.
Then, let’s examine the preparation of a flexible budget.
- Introduction to Flexible Budgeting. Authored by: Freedom Learning Group. Provided by: Lumen Learning. License: CC BY: Attribution
- Static and Flexible Budgets | Accounting. Authored by: Chegg Tutors. Located at: https://youtu.be/d34RfJvymuM. License: All Rights Reserved. License Terms: Standard YouTube License