If actual production totals 8,200 units, the flexible budget would show net income of: $8,100.
What is a Budget?
- Governments, companies, and individuals use budgets to estimate their income and outlay for a given future period of time.
- Budgets are essentially financial plans for a specific time period, often a year, and are known to significantly increase the success of any financial endeavor.
- Corporate budgets are necessary for achieving maximum productivity.
- A budget may help with resource allocation as well as goal-setting, outcome evaluation, and emergency preparedness.
- Personal budgets are very helpful for managing a person's or family's money over the long and short term.
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