Functional budget – meaning and example.

What are duties of internal auditor?

The functional budget is one that relates to any of the functions of an organization. The number of functional budgets depends upon the size and nature of business. The following are the commonly used: read more

7 Advantages of flexible budget

Accounting treatment for provision, contingent liabilities and contingent assets as required by IAS 37.

A flexible budget is a budget that takes into account changes in sales volume and other cost driver activities.
The budget incorporates the effects on each cost and revenue as a result of the change in activity. It determines the variability of the cost along with the level of activity, which will be then used as a control tool. The aim of this budget is to control the cost. read more

What is a flexible budget or variable budget?

What is a flexible budget or variable budget?

Flexible budget or variable budget is the budget which by recognizing the difference in behavior between fixed and variable cost in the relation to fluctuations in output, turnover or other variable factors such as the number of employees, is designed to change appropriately with such fluctuations. read more