Definition
Flexiblebudgetisequaltoflexiblebudget.Flexiblebudgetingmethod,alsoknownasvariablebudgetingmethodandslidingbudgetingmethod,isamethodofpreparingbudgetsbasedonthevariablecostmethodandbasedondifferentbusinesslevelsinthefuture.Itisasymmetricalfixedbudget.Itreferstoanexpensebudgetthatispreparedbasedonthevariousbusinessvolumelevelsthatmayoccurduringthebudgetperiod,andthecorrespondingexpenseamountsaredeterminedrespectively,andthatcanadapttomultiplebusinessvolumelevels.Inordertoreflectthelevelofexpenses(orprofit)thatshouldbespent(orobtained)underthecircumstancesofeachbusinessvolume.Itispreciselybecausethiskindofbudgetcanreflecttheamountofexpenditurecontrolateachlevelofbusinessvolumewithchangesinbusinessvolume,andhasacertaindegreeofflexibility,soitiscalled"flexiblebudget".
Whenusingtheflexiblebudgetmethodtopreparethecostbudget,thekeyistodivideallcostsintovariablecostsandfixedcosts.Variablecostsaremainlycontrolledbasedonunitbusinessvolume,whilefixedcostsarecontrolledbasedontotalamount.Theflexiblecostbudgetmethodisasfollows:flexiblecostbudget=fixedcostbudgetnumber+∑(unitvariablecostbudgetnumber×estimatedbusinessvolume)
Basiccontent
Flexiblebudget-flexiblepreparationBudgetingsteps:
Thestepsforpreparingaflexiblebudgetareasfollows:
①Selectanddeterminetheunitconsumption,man-hours,andmachine-hoursofvariousbusinessactivities.
②Predictanddeterminethepossiblebusinessvolumeofvariousbusinessactivities.Whendeterminingthebusinessvolumeofeconomicactivities,itisnecessarytocoordinatewitheachbusinessdepartment.Generally,itcanbedeterminedaccordingtotherangeof70%-120%ofthenormalbusinessactivitylevel,oritcanbedeterminedaccordingtotheminimumbusinessvolumeandthemaximumbusinessvolumeinthepasthistoricaldata.Upperandlowerlimits,andthendividethemintoseverallevels,sothattheflexiblebudgetcompiledismorepractical.
③Accordingtothedependencerelationshipbetweencostbehaviorandbusinessvolume,theproductioncostoftheenterpriseisdividedintovariableandfixedcategories,andtherelationshipbetweenvariousexpensesandbusinessvolumeisdetermineditembyitem.
④Calculatetheforecastdataundervariousbusinessvolumelevelsandexpresstheminacertainwaytoformaflexiblebudgetforacertainitem.
Mainfeaturesofflexiblebudget:
①Itcanprovideaseriesofproductionandoperationbusinessvolumebudgetdata,whichiscompiledforaseriesofbusinessvolumelevels.Therefore,whenacertainWhentheactualbusinessvolumeofthebudgetitemreachesanylevel(mustbewithintheselectedbusinessvolumerange).Allhavetheirapplicablesetofcontrolstandards.
②Becausethebudgetislistedseparatelyaccordingtothenatureofeachcost,itisconvenienttocalculatethepredictedcostunderanyactualbusinessvolumelevel,sothatthemanagementstaffcanstrictlycontrolthecostbeforehand.Expensesprovideconvenience,anditisalsoconducivetodetailedanalysisofthereasonsforvariouscostsavingsoroverspendingaftertheevent,andtosolvetheprobleminatimelymanner.
Theadvantagesandapplicabilityofflexiblebudgets
Theadvantagesofflexiblebudgetsare:ontheonehand,theycanadapttochangesindifferentoperatingThecontrolfunctionavoidsfrequentrevisionstothebudgetwhentheactualsituationchanges;ontheotherhand,itcanmaketheevaluationandassessmentoftheactualimplementationofthebudgetbeestablishedonamoreobjectiveandcomparablebasis.
Thismethodissuitableforvariousprojectexpendituresthatvarywiththevolumeofbusiness,suchastheschool’sgoodsprocurementproject.Sincetheenrollmentscaleofstudentsvariesgreatly,thenumberofenrollmentandtheThenumberofdesks,benches,beds,thenumberofschoolbuildingsthatshouldbepurchasedfortheestimationofthenumberofstudentsintheschool,orotherprocurementitems.