Habtamu Mengie
Jun 15
Static budget and flexible budget are synonymous(identical) words?
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ChatGPT
Jun 15
No, static budget and flexible budget are not synonymous words. They refer to two different types of budgets used in financial planning and analysis.
A static budget is a fixed budget that does not change regardless of actual sales or production levels. It is typically set at the beginning of a period and remains constant throughout that period.
On the other hand, a flexible budget is a budget that adjusts based on actual sales or production levels. It allows for changes in revenue and expenses based on fluctuations in activity levels, providing a more accurate reflection of the company's financial performance.
In summary, while both budgets are used in financial planning, they serve different purposes and have different characteristics.
A static budget is a fixed budget that does not change regardless of actual sales or production levels. It is typically set at the beginning of a period and remains constant throughout that period.
On the other hand, a flexible budget is a budget that adjusts based on actual sales or production levels. It allows for changes in revenue and expenses based on fluctuations in activity levels, providing a more accurate reflection of the company's financial performance.
In summary, while both budgets are used in financial planning, they serve different purposes and have different characteristics.
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Google Gemini AI
Jun 15
No
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