Introduction to Flexible Budgeting

What you’ll learn to do: Outline the effects of flexible budgeting on budgetary control

In the previous section, we discussed the preparation of a master budget, which is a static budget. We now want to look at the advantages of preparing a flexible budget, since markets change, competition changes and the quantities we initially determined in our sales budget may flex over time.

Take a few minutes to watch this video introduction to flexible budgets before moving on.


Then, let’s examine the preparation of a flexible budget.