ACC 206 Week 4 DQ2 Flexible Budgets

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ACC 206 Week 4 DQ2 Flexible Budgets ACC 206 Week 4 DQ2 Flexible Budgets Flexible budgets provide different information than static budgets. Discuss some of these differences. Is a flexible budget always better? Are there times when you'd recommend using a static budget over a flexible budget? Guided Response: Review your peers’ posts and respond to at least two of your classmates. Discuss whether you agree or disagree with the uses of a flexible budget and why. We learned in chapter six that Budgets are financial plans that are detailed and that quantify future expectations and actions for companies. “They provide benchmarks against which to compare actual results, establish guidelines for expenditures, and may be used to establish forward-looking guidance to persuade investors and creditors to invest or lend to a business.” (chap. 6.1) The two type of budgets in question are the flexible budget and the static budget. The static budget was developed for a single level of activity; however the problem with this budget is that it does not always account for volume fluctuations. On the other hand. adiusting budgets for the effects of volume fluctuations is the goal of a + StudyXY
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