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What is the difference between flexible budget & static budget?

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Question ajoutée par AHMED SAYED , ACCOUNTANT , Unicharm Gulf Hayginic Industries
Date de publication: 2013/10/20
Khaled Abdelrehim ACCA DipIFR CMA
par Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

in the static budget we don't change the production voulme according to the actual volume in production and we leave everything as it is in the budget, but in theflexible budget we leave the standard cost as it is mentioned in the budget but we change the budgeted production volume to the actual production volume

Savad Sainulabdeen
par Savad Sainulabdeen , Accountant , Abu Dhabi Fishermen Cooperative Society

The difference between static budget and a flexible budget is that a static budget does not change with the output while a flexible budget changes with the level of outputs. Static budget has a limited application while a flexible budget has a variety of applications.

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