What is the difference between a static budget and a flexible budget?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
What is the difference between a static budget and a flexible budget?
The question has covered the concept of Static Budget and Flexible Budget. That is discussed below,
Static Budget:-
A static budget is also known as a fixed budget. This Budget is prepared for a particular level; of Output.
Flexible Budget:-
A flexible Budget is a variable Budget. This Budget is prepared for different levels of Output.
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