An international business will operate more easily in a fixed exchange rate system. Knowing what the equivalency of goods will allow for predetermined forecasting, however, a fixed rate decreases the opportunity for profits.
Budgets can be classified according to Time, Function, and Flexibility.ACCORDING TO TIME:1. Long Term Budget2. Short Term Budget3. Current Budget4. Rolling budgetACCORDING TO FUNCTION:1. Sales Budget2. Production Budget3. Cost of Production Budget4. Purchase Budget5. Personnel budget6. R & D Budget7. Capital Expenditure Budget8. Cash Budget9. Master BudgetACCORDING TO FLEXIBILITY:1. Fixed Budget2. Flexible Budget
It is a combination of fixed and flexible exchange rate, thsi system hanges par values of currency by small amount at frequent specified intervals
no
Austerity and balanced budgets.
Flexible budgets are prepared for different capacity levels like normal capacity, optimistic capacity and pesimistic capacity based on actual budgets.
A fixed budget will help businesses manage finances. With a fixed budget managers will not have the ability to spend extra funds.
Fixed or Static buget is for a particular activity level. Flexible budget is for a range of activity level. Differentiate between Fixed and Flexible budget ? Needs a complete answer.
annual operating budgets include estimated revenues and appropriations for expenditure for a specific fiscal year. Capital budgets control the expenditures for construction projects and fixed asset acquisitions
Flexible expenses vary over time.
Flexible expenses vary over time.
The activity base should not be expressed in dollars or other currency. For example, direct labor cost is usually a poor choice for an activity base in flexible budgets. Changes in wage rates affect the activity base but do not usually result in a proportionate change in overhead. Therefore, it is normally best to use physical, rather than financial, measures of activity in flexible budgets..Answer - NO
fixed budget is the budget whose all estimation is not changed after making this type of budget for more knowledge of budget == == == == == ==
Flexible automation ; You have to consider it when you need low production rate, varying in demand and shot product cycle. As you see the difference between these two automation's name Flexible automation has flexibility to deal with design variations. Fixed automation ; In the opposite of Flexible automation should be consider when you have high demand volume and long product cycles. The product unit of fixed automation is more cheaper than the one which made in flexible manufacturing system.
Fixed mortgages tend to be better because the price always remains constant while flexible mortgages tend to increase over time which can be a strain.
true
Fixed Budget Flexible Budget Fixed budget is inflexible and does not change with the actual volume of output achieved. Flexible budget can be suitably recasted quickly according to level of activity attained. Fixed budget assumes that conditions would remain static. Flexible budget is design to change according to changed conditions. Costs are not classified according to their variability i.e. fixed, variable and semi variable. Coasts are classified according to the nature of their variability. Comparison of actual and budgeted performance cannot be done correctly if the volume of output differs. Comparisons are realistic as the changed plan figures are placed against actual ones. It is difficult o forecast accurately the resultsin it. Flexible budget clearly shows the impact of various expenses on the operational aspects of the business. Only one budget at a fixed level of activity is prepared due to an unrealistic expectation on the part of the management Series of budgets are prepared at different level of activities. Fixed budget has a limited application and is inefficient as a tool for cost control. Flexible budget has more application and can be used as a tool for cost control. If the budgeted and actual activity levels vary, the correct ascertainment os coasts and fixation of prices becomes difficult. Flexible budget helps in fixation of prices and submission of tenders due to correct ascertainment of coasts.