9.10: Introduction to Flexible Budgeting

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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.

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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