create a response to the followig The fixed budget is continual and constant, and under any given circumstances this budget will never change. A fixed budget is not flexible, and a fixed budget is very straightforward. When we look at the value of a fixed budget does not fluctuate based on increases or decreases in revenue, or if there is an increase in operating costs. The fixed budget’s value is determined once it is assigned to the balance sheet without change. A fixed budget will be assigned for a precise time that is shown in the organization’s budget plan (Van Baal &Meltzer 2016). The fixed budget does not show any unpredictability based on the organization’s activity (Van Baal &Meltzer 2016). When we look at a flexible budget, there is a huge difference. A flexible budget is defined as a budget based on the static budget assumptions but adjusted to reflect realized volume (Reiter & Song 2021). A flexible budget can and will be changed to meet the needs of the organization. The flexible budget is an element found in an organization’s accounting and is totally dependent on other parts of the organization’s operation to determine its value. The value of the flexible budget is often determined when there is a change, increase or decrease in the capacity or volume of activity or the increase or decrease of operating cost.
create a response to the followig
The fixed budget is continual and constant, and under any given circumstances this budget will never change. A fixed budget is not flexible, and a fixed budget is very straightforward. When we look at the value of a fixed budget does not fluctuate based on increases or decreases in revenue, or if there is an increase in operating costs. The fixed budget’s value is determined once it is assigned to the
Step by step
Solved in 3 steps
