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Flexible Budget

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Flexible budget
A budget that shows how costs vary with different rates of output or at different levels of sales volume and projects revenue based on these different output levels.

Flexible Budget
A budget that considers different levels of production or sales. A flexible budget makes different amounts available to departments depending on what production or sales are realized. For example, a flexible budget may make 6% more money available to its research and development department if its revenue increases 6%.


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