ECONOMICS

Detailed explanation-1: -A flexible budget summarizes revenues and expenses for various levels of sales volume within a relevant range. Flexible budgets separate variable costs from fixed costs; the variable costs put the flex in the flexible budget.

Detailed explanation-2: -A flexible budget is one based on different volumes of sales. A flexible budget flexes the static budget for each anticipated level of production. This flexibility allows management to estimate what the budgeted numbers would look like at various levels of sales.

Detailed explanation-3: -Flexible budgets are essentially budgets that can be adjusted depending upon revenue and cost changes throughout the fiscal year, accounting for expected unpredictability. Companies first account for the fixed costs they expect, or at least costs that they don’t expect to change as the year progresses.

Detailed explanation-4: -A flexible budget is a budget that shows differing levels of revenue and expense, based on the amount of sales activity that actually occurs.

Detailed explanation-5: -Flexible Budget-a summarized budget that can easily be computed for several different production volume levels. Separates variable costs from fixed costs.