Asked by Yasmine Abbas on Jul 14, 2024
Verified
Variable budget is another name for a flexible budget.
Variable Budget
A budget that adjusts in response to changes in activity levels or other factors, as opposed to a fixed budget.
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate forecasting and analysis.
- Familiarize yourself with the disparities between fixed and adaptable budgeting approaches.
Verified Answer
EM
Elena ManrezaJul 19, 2024
Final Answer :
True
Explanation :
Variable budget and flexible budget are two terms used interchangeably to refer to a budget that can flex or adjust based on actual sales and revenue figures, as well as any changes in expenses. It allows for greater accuracy in predicting profits and expenditures, and can be a useful tool for businesses that experience fluctuations in income or unexpected expenses.
Learning Objectives
- Familiarize yourself with the disparities between fixed and adaptable budgeting approaches.