Therefore, fixed and flexible budget both are forms of the budget necessary for any company that wants to control, appropriate decision-making and coordination of business activities. However, they also have some differences. For a fixed budget, it will match the TFH when companies operating in a poor business environment is dynamic, while the flexible budget is best for the business activities of the TFH in a cluttered market. Furthermore, a fixed budget is much easier to prepare than a flexible budget because it does not require changing constantly, while the flexible budget is more complex with the view is larger in number. Besides, the accuracy of the flexible budget can easily be affected by the changes in the business environment. On the other hand, Budget flexible will be also preferred mostly by TFH as it allows the company to better plan and adjust to unexpected situations.
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