In short, flexible are much more adventagous in comparison to static planned budgets. Static budgets are prepared before the period, therefore the amount of units sold are likely to be incorrect. This is fine, because it's a budget, but it is not very useful for decision making. Flexible budgets are prepared once the number of actual units sold is known.
Think about it this way. If a company sells 200 units, but the static budget predicted 100, all of your expenses are going to result in unfavorable variances. However, expenses would be expected to increase with an increase in sales. Therefore, it is adventagous in terms of decision making based on the variances. The varainces tell managers such things as the efficiency of labor and material usages, as well as the price variances.
Hope this helps, but there's tons of info out there for you to find.
Some of the advantages of incremental budgeting are that this type of budgeting is easy and quick. Some disadvantages of incremental budgeting are that different methods for achieving the objective may not be considered and if the budget is not fully spent it can be reduced during the next period.
Budgets can help you control spending and to gain a clear picture of your financial status. However, budgeting can take a lot of time, and errors can occur.
The advantages are that you will be able to get more things for the business. The disadvantages are that they are a lot of costs.
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Some of the advantages of incremental budgeting are that this type of budgeting is easy and quick. Some disadvantages of incremental budgeting are that different methods for achieving the objective may not be considered and if the budget is not fully spent it can be reduced during the next period.
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Advantages of Rubber is it is flexible and can be moulded into any shape. Disadvantages are when heated it expands and when cooled it contracts.
disadvantages: 1. implenentation cost is high. 2. not ideal for temporary network setup 3. not flexible.
I do not see any disadvantages in budgeting because it is a positive way in tracking your money. However, the only disadvantage I see is that if the person budgeting does not know how to handle money.
Budgets can help you control spending and to gain a clear picture of your financial status. However, budgeting can take a lot of time, and errors can occur.
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