What is a good response to? Hello everyone, What are the primary benefits of using flexible budgets in the planning and control of an organization's finances? Are there any potential drawbacks or challenges associated with implementing flexible budgets? A flexible budget utilizes data from operations to better plan throughout the year (Mahoney, 2022). Unlike a static budget, which is a good starting point, a flexible budget allows you to stay updated with actual sales and production throughout the budgeted period. The adjusted information throughout the year gives companies a better outlook on how the year-end will look. I think the most significant benefit of flexible budgeting is it allows management to change their strategies based on issues or opportunities that they see during operations. Although flexible budgeting can enable companies to engage more in operations throughout the year, there can be some possible drawbacks. One of the drawbacks is it will take more time to update the operational changes and analyze the data to benefit from this type of budgeting, which could potentially create another job position. It may also be difficult for staff to separate costs effectively without training to help them identify the information needed to update a flexible budget.
What is a good response to?
Hello everyone,
What are the primary benefits of using flexible budgets in the planning and control of an organization's finances? Are there any potential drawbacks or challenges associated with implementing flexible budgets?
A flexible budget utilizes data from operations to better plan throughout the year (Mahoney, 2022). Unlike a static budget, which is a good starting point, a flexible budget allows you to stay updated with actual sales and production throughout the budgeted period. The adjusted information throughout the year gives companies a better outlook on how the year-end will look. I think the most significant benefit of flexible budgeting is it allows management to change their strategies based on issues or opportunities that they see during operations. Although flexible budgeting can enable companies to engage more in operations throughout the year, there can be some possible drawbacks. One of the drawbacks is it will take more time to update the operational changes and analyze the data to benefit from this type of budgeting, which could potentially create another job position. It may also be difficult for staff to separate costs effectively without training to help them identify the information needed to update a flexible budget.
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