Fixed budget is more useful than a flexible budget

When to use a flexible or Fixed budget

Most businesses should use both flexible and Fixed budgets during the course of their business operations, with the sole exception of business cycles in which the company adheres strictly to the original Fixed budget, in which case the actual statistics contained in the Fixed and flexible budgets would be the same.

Consequences of inaccurate budget monitoring

Businesses that do not correctly track the changing expenses compared to the initial Fixed budget have difficulties in correctly reporting their real earnings, which can lead to negative legal implications in the future. Companies also have an interest in providing accurate information to shareholders so that they can properly manage their securities portfolios and adjust their dividend expectations accordingly.

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2 Responses

  1. 2018

    […] Fixed budget is more useful than a flexible budget IGNOUASSIGNMENTGURU निष्पादन बजटिंग में संगठन के निष्पादन (कार्य) के मूल्यांकन में संगठन के विशिष्ट और सामान्य उद्देश्यों दोनों के संदर्भ में मूल्यांकन शामिल है। यह सामान्य रूप से संगठनात्मक उद्देश्यों की क्रिस्टल स्पष्टता और विशेष रूप से, संगठन के एक कर्मचारी द्वारा, उनके स्तर के बावजूद बजट में निर्धारित अल्पकालिक व्यापार उद्देश्यों का अनुमान लगाता है। […]

  2. 2018

    […] Fixed budget is more useful than a flexible budget IGNOUASSIGNMENTGURU […]

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