Asked by
briana romero
on Oct 15, 2024Verified
A variable or flexible budget is so named because it only focuses on variable costs.
Variable Budget
A budget that adjusts spending levels based on changes in actual revenue or other financial indicators.
Variable Costs
Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.
- Understand the distinction between variable (flexible) and fixed budgets and their respective roles in financial planning.
Verified Answer
AA
Learning Objectives
- Understand the distinction between variable (flexible) and fixed budgets and their respective roles in financial planning.