Fixed budget is more useful than a flexible budget

Explanation of flexible budget –

Flexible budgets work well as a performance evaluation tool in conjunction with a Fixed budget and are basically a comprehensive accounting of the variations in Fixed budget expenditures.

Flexible budget expenditures could be prevented by offering performance incentives to employees related to staying within the Fixed budget. A basic rule about flexible budgets is that they are a business cycle analysis tool and can not be collected before the end of the business cycle itself. Analyzing the flexible budget at the end of the business cycle helps the administration adjust the forecasts of the Fixed budget for the next business cycle to match the changing circumstances of operating expenses. In short, a flexible budget can be described as an accounting of real expenses at the end of a period that serves to make a comparison with the original Fixed budget.