A flexible budget is based on a single predicted amount of sales or other activity measure. - TRUE
- value variances are unnoticed underneath management by means of exception. fake
- flexible budget is based on a unmarried anticipated quantity of sales or other pastime degree:false
{bendy budget is based totally on numerous different amounts of income or different interest measure}
- solution: flexible budget
- A bendy price range is that which is prepared for extraordinary degrees of hobby the use of the assumptions or parameters contained in a set finances.
- It consists of finances of diverse stage of sports regularly consisting of each a high-quality-case and worst-case scenario. all of the numerous extraordinary tiers are then represented comparatively, showing the complete price range of every level.
- for instance, if it's far assumed that the variable fee in keeping with unit is $nine, a business might prepare budgets for allow say , 15,000 gadgets, sixteen,000 units 18,000 units displaying the expected revenue, expenditure and income for these exclusive scenarios. Such finances is known as flexible finances.
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