When a fixed budget was adjusted to account for different results, it can be called a flexible budget. And with budget flexibility, it is designed to change according to the level of activity achieved. Of course, with the use of this budget, it is important for TFH is because it will help the TFH for changes in costs or income in the future. Besides, it will also help the TFH to predict the different level of economic activity as well as to ensure that the budget of TFH is prepared to match any fluctuations.
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