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Budgeting as a tool used by management

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Respond to the following in a minimum of 175 words:

Budgeting is a tool used by management for performing the functions of planning, coordinating, and controlling operations of a business. Our textbook, Managing Accounting Concepts, describes 2 main types of budgeting: static budgets and flexible budgets. Differentiate between the 2 types of budgets and include the following in your response:

Provide an example of the type of business or company that would benefit from using a flexible budget.
Provide support for your business selection and include the advantage for using a flexible budget over a static budget.

Sample Solution

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