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Who uses a Static Budgets?

Updated: 9/22/2023
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Q: Who uses a Static Budgets?
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What is a budget that is prepared for one level of activity?

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.


How are statistics budgets revenue budgets and operating budgets related?

ask your brain


What are the advantages and disadvantages of flexible budgeting?

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.


What is the difference between family budgets and personal budgets?

the personal is for your self and family is a group


What is the disadvantages of cash budgets?

Distortion is caused by cash budgets. Influence of non-financial factors will also affect the final decisions when it comes to cash budgets. Cash budgets are vulnerable to manipulations. The major disadvantage is that cash budget relies on estimates.