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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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%.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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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.
Quinn's lessons from the journey--particularly in selling the idea to internal stakeholders and implementing a process and technology to support it--could benefit other companies contemplating the adoption of a more flexible budgeting and forecasting process.
Flexible budgeting at General Motors, frequently unrecognized, also was in place during his financial administration in the early 1920s.
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Budget types (activity-based MA budgeting, flexible budgeting, project budgeting) 3.
Flexible budgeting in the public sector can be defined as the ability of a government to deal with opportunities and challenges in a timely and efficient way.
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).

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