Respuesta :
The advantage that will be provided to the organization is flexible budgeting allows for adjustments throughout the year based on volume. Flexible budgets do not necessarily involve longer budget cycles or more participation by staff. Flexible budgeting has no effect on reimbursement policies.
A flexible budget is a budget that adapts to the activity and quantity of a company. Unlike static budgets, which do not change from the amount set when the budget was created, flexible budgets continue to be "flexible" as a company's costs fluctuate.
No matter what happens to the business environment, the numbers do not change throughout the year. Flexible budgets, on the other hand, are a set of budgets created for different levels of activity, income, and expenses.
A flexible budget is adjusted based on changes in actual income and other activities. The result is a budget that is fairly closely matched to the actual result. This approach differs from the more general static budget, which includes only fixed spending that does not change with actual income.
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