What is the main difference between fixed and flexible budget?Why fixed budgets are preferred...

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Accounting

What is the main difference between fixed and flexible budget?Why fixed budgets are preferred in
government departments? Discuss the benefits of both types ofbudgets.

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Difference between fixed and flexible budget 1 Meaning A flexible budget refers to a budget that allows adjusting based on a change in the assumptions used to create the budget during managements process of planning A fixed budget is a budget that remains the same even if there are significant changes from the assumptions made during planning 2 Nature Flexible budget is very dynamic and on contrary the fixed budget is always static 3 Comparison Under flexible budget comparison is easy because of the similarity in the activity levels and on See Answer

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In: AccountingWhat is the main difference between fixed and flexible budget?Why fixed budgets are preferred in...What is the main difference between fixed and flexible budget?Why fixed budgets are preferred ingovernment departments? Discuss the benefits of both types ofbudgets.