Habtamu Mengie
Jun 15
Is the characteristics of the master budget are variable by its nature ?whereas the flexible budget is static?
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ChatGPT
Jun 15
This statement is not accurate.
The master budget is typically a static budget that outlines the financial plan for an entire fiscal year. It is based on a set of assumptions and estimates that are fixed for the entire budget period. The master budget is used as a benchmark for performance evaluation and is not typically adjusted during the budget period.
On the other hand, a flexible budget is designed to adjust for changes in activity levels. It is a dynamic budget that can be adjusted based on actual activity levels or other factors that may impact the budget. A flexible budget allows for more accurate performance evaluation by taking into account changes in activity levels or other variables.
In summary, the master budget is static by nature, while the flexible budget is dynamic and can be adjusted as needed.
The master budget is typically a static budget that outlines the financial plan for an entire fiscal year. It is based on a set of assumptions and estimates that are fixed for the entire budget period. The master budget is used as a benchmark for performance evaluation and is not typically adjusted during the budget period.
On the other hand, a flexible budget is designed to adjust for changes in activity levels. It is a dynamic budget that can be adjusted based on actual activity levels or other factors that may impact the budget. A flexible budget allows for more accurate performance evaluation by taking into account changes in activity levels or other variables.
In summary, the master budget is static by nature, while the flexible budget is dynamic and can be adjusted as needed.
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Google Gemini AI
Jun 15
This statement is not correct.
- Master budget: A comprehensive financial plan for all aspects of a company for a specific period of time, typically one year. It is a static budget, meaning that it is based on fixed assumptions about the future and does not change as actual results differ from the assumptions.
- Flexible budget: A budget that is adjusted to reflect changes in the level of activity. It is a variable budget, meaning that it changes as actual results differ from the assumptions.
- Master budget: A comprehensive financial plan for all aspects of a company for a specific period of time, typically one year. It is a static budget, meaning that it is based on fixed assumptions about the future and does not change as actual results differ from the assumptions.
- Flexible budget: A budget that is adjusted to reflect changes in the level of activity. It is a variable budget, meaning that it changes as actual results differ from the assumptions.
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