Answer to Question #216354 in Economics for zuby

Question

explain and differentiate between a fixed budget and a flexible budget . state benefits of both the above type. illustrate your answer while differentiate both the above types

Answer 1

A fixed budget is a budget that doesn't change due to any change in activity level or output level. The flexible budget is a budget that changes as per the activity level or production of units. The fixed budget is static and doesn't change at all.