Accounting Flexible Budget Adjusting to Changes
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Compare and contrast a flexible budget and a static budget. Recommend which budget would be appropriate for Apple Inc. Provide support for your recommendation.
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Hello Class,
Compare and contrast a flexible budget and a static budget. A Flexible budget is a budget that can change depending on the company’s level of spending activity. Whereas a static budget will never change based on the company’s level of spending activity. A static budget is developed a year in advance to try and analyze the level of spending activity for the year.
Recommend which budget would be appropriate for Apple Inc. Provide support for your recommendation. For Apple, Inc, I would recommend a flexible budget, this way if operating costs or performance levels change, the budget can adjust accordingly.
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