Question: What is the main difference between a fix and flexible budget?and why-and choose flexible budget can provide less realistic control information than fixed budgets A
What is the main difference between a fix and flexible budget?and why-and choose
- flexible budget can provide less realistic control information than fixed budgets
- A fixed budget is produced for an entire organisation,but a flexible budget is applicable only to a single department
- A fixed budget is based on specific level of production/sales and a flexible budget can be prepared for any production level
- A flexible budget considers only variable costs, but a fixed budget considers all costs
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