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The budget that is prepared for one level of activity is known as a static budget. A static budget is often one of many other budgets that are created off of a master budget.
Fixed or Static buget is for a particular activity level. Flexible budget is for a range of activity level. Differentiate between Fixed and Flexible budget ? Needs a complete answer.
SALES
Rigid Budget: It does not change with actual volume of activity achieved. Thus it is known as a Rigid or inflexible budget.
With flexible budget, you check whether the actual activity level is within the range of activity for flexible budget. If yes, then you compare very easily. Just extrapolate your budget for the actual activity level. Only Variable costs needs to be updated (as Fixed costs remain same for a particular activity level). Finally you have the actual results and budgeted results, both on the same activity level. This provides you the ground for comparing the both.
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PPBES
a budget which is prepared for one level of activity is:
The Production Budget for Paranormal Activity 4 was $5,000,000.
The Production Budget for Paranormal Activity 2 was $3,000,000.
The budget that is prepared for one level of activity is known as a static budget. A static budget is often one of many other budgets that are created off of a master budget.
The Production Budget for Back to the Future Part III was $40,000,000.
what are the area that would typically be included in a household budget
Fixed or Static buget is for a particular activity level. Flexible budget is for a range of activity level. Differentiate between Fixed and Flexible budget ? Needs a complete answer.