Budgeting is a tool used by management for performing the functions of planning, coordinating, and controlling operations of a business. Our textbook, Managing Accounting Concepts, describes 2 main types of budgeting: static budgets and flexible budgets.
Respond to the following in a minimum of 175 words:
- Differentiate between the 2 types of budgets.
- Provide an example of the type of business or company that would benefit from using a flexible budget.
- Provide support for your business selection and include the advantage for using a flexible budget over a static budget.