flexible budget

(redirected from Flexible Budgeting)

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%.

flexible budget

a BUDGET that is designed to change in accordance with the level of activity actually attained, so that it allows for the variation in COSTS associated with changes in output volume. The costs associated with running a manufacturing plant, for instance, at 50% of capacity are different from running it at 70% or 100% capacity. The budget must allow for variation in plant utilization by distinguishing between FIXED COSTS, VARIABLE COSTS and SEMI-VARIABLE COSTS and their relationship to output. Flexible budgets facilitate more appropriate comparisons between the actual costs associated with the output attained and the budgeted costs for that output level. See BUDGETING, BUDGETARY CONTROL.
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The example that follows is a hypothetical illustration of the innovative application of flexible budgeting to sustainability performance measures by Bacardi Limited.
Flexible budgeting will assist in implementing and controlling marketing and production changes.
EPSi provides its Integrated Performance Improvement suite of web-based, integrated financial decision support applications that automate flexible budgeting, product line budgeting, productivity, cost accounting, financial modeling, contract management, product-line analysis, enterprise-wide reporting and executive dashboard presentation.
Even techniques such as flexible budgeting may give a manager only limited control over the level or content of the expenditure for which he is responsible.
We will define a simplified flexible budgeting method that realistically relates costs to volume, then apply the method in a typical laboratory setting and suggest actions based on the results.
The most important project management features include advanced billing based on completed tasks or completion percentage, integrated inventory, integrated timesheets, flexible budgeting, resource scheduling, and advanced revenue recognition.
Throughout this time, the association was renowned for the ground-breaking, influential management accounting research it produced, particularly those studies that contributed new ideas to business, such as standard costing, budgets and flexible budgeting for cost control, new methods of inventory valuation, decision making, direct costing, electronic accounting techniques, and the new manufacturing environment.
All types of consumers are recognizing the benefits of prepaid products such as the freedom from contracts to the flexible budgeting aspect and even the parental control mechanism.
arcplan Edge, its flexible budgeting, planning and forecasting software that combines Excel and web based templates with reporting, dashboards and workflow.
Target costing 74 18 6 Capital budgeting techniques 73 27 0 Flexible budgeting 72 28 0 Life-cycle costing 67 33 0 Economic Value Added (EVA[R]) 60 40 0 Internal transfer pricing 55 43 3 Traditional overhead allocation 55 35 0 Note: Percentages for each technique may not add up to 100% due to "Do not know" or "Not applicable" responses and due to rounding.
Schools with flexible budgeting were able to realign funds to meet student needs based on data and address priorities such as reading, professional development and technology.

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