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%.

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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To date, I have developed and class-tested seven Excel-based projects on core management accounting topics: job costing, process costing, cost behavior, cost-volume-profit (CVP) analysis, budgeting, flexible budgeting, and division performance evaluation.
For example, the descriptions of local governments in the aggregate on the use of flexible budgeting does provide important insights generalized from surveying a local government jurisdictions (Beckett and Doamekpor, 2011), but does not provide internal insights as to the decision-making processes that lead to sustainable budgets, or conversely the decisions that can drive a local government to bankruptcy.
Flexible budgeting at General Motors, frequently unrecognized, also was in place during his financial administration in the early 1920s.
For companies that require more advanced budgeting techniques, best practice examples are available, including flexible budgeting and zero-base budgeting.
Budget types (activity-based MA budgeting, flexible budgeting, project budgeting) 3.
The rating reflects the school's strong operating performance and flexible budgeting, said Carlotta Mills, credit analyst at the agency.
Budgeting tools such as rolling forecasts, flexible budgeting, zero-based budgets and Beyond Budgeting.
The value of both of these reforms seems obvious, and with enough debate and discussion of each, we should see the development of better reporting practices and flexible budgeting regimens.
The paper demonstrates a method of incorporating LP into flexible budgeting and variance analysis.
After-the-fact flexible budgeting allows for the removal of the flexible budget variance (budgeting for a different volume than sold).
The last element of the assignment introduces simple flexible budgeting.
The reallocation of defaulted amounts along with the flexible budgeting process results in an unlimited implied step-up obligation for the performing purchasers.

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