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What is Flexible vs. Planning Budget Explained about?

A planning budget is a static financial plan based on a single forecasted activity level, primarily used for initial planning and forecasting. In contrast, a flexible budget adjusts to actual activity levels, providing a more accurate assessment of performance and costs, making it useful for performance evaluation. Using both budgets together allows companies to effectively plan for the future and analyze performance.

Author

ledangnhuthuyhp2023

Language

EN