Budgets can be divided into two basic categories; static budget and flexible budget. A static budget or planning budget is prepared for a fixed volume of sales and the values of the static budget do not change with the change in volume of sales. On the other hand, a flexible budget is prepared at different levels of sale and the values of the flexible budget change with the change in the level of sales. To prepare: The flexible budget performance report.

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Chapter 9, Problem 9.17E

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Budgets can be divided into two basic categories; static budget and flexible budget. A static budget or planning budget is prepared for a fixed volume of sales and the values of the static budget do not change with the change in volume of sales. On the other hand, a flexible budget is prepared at different levels of sale and the values of the flexible budget change with the change in the level of sales.

To prepare: The flexible budget performance report.

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