Question

Explain the above budgets with Imagineer figure
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Answer 1

Answer:

1. a fixed budget is a budget that does not change or flexor increases or decreases in volume volume could be cells units produced or some other activity of fixed budget is also known as a static budget.
2. flexible budget is a budget that address through the activity or volume levels of a company and like a static budget which does not change from the amounts established when the budget was created a flexible budget continuously fluxes with the business variations in costs.
3. the objective of zero based budgeting is to reset the clock each year the traditional incremental budgeting assumes that there is a great native budget rebase the previous year zero based budgeting implies that managers need to build the budget from the ground up starting at zero through this system each program is justified in its entirely is time and new budget is developed.