Budgeting is how a business plans for future production cycles. An initial budget - known as a "static" budget - is a necessary planning tool; creating a second, flexible budget allows a business to ...

Performance reports comparing your budget to the reality of income and expenses are an everyday part of business. Static budgets and reports that assume set figures for everything aren't as useful for ...

A flexible budget is one that is allowed to adjust based on a change in the assumptions used to create the budget during management's planning process. A static budget, on the other hand, remains the ...

Budgets are important tools for helping companies analyze their costs and pinpoint ways to maximize their profits. Some companies follow static budgets, which remain constant regardless of sales ...

Best for: Ongoing projects with an inconsistent work flow and a flexible budget. Example: Company XYZ contracts with a Web developer to maintain its Web site. This typically requires just a few hours ...

Use as a Starting Point: See the static budget as the initial step and be ready to adapt it as more information becomes available.