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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.

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OBT has only fifteen dancers this season, a tradeoff for the allocation of resources for its new building, and the tentative, flexible budget is under $100,000, low for a project of this magnitude.
With the flexible budget framework in place, a few keystrokes can illustrate how different assumptions affect results.
Often both a fixed and a flexible budget are used for accurate forecasting and costing.
 
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