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What are the advantages and disadvantages of flexible budget.

The advantages and disadvantages of the flexible budget according to the research are following:

Advantages =

1)  Flexible budget is more important than other budget as it provides the information of original as well as actual budget.

2) It is more useful by financial experts because it helps to show accuracy and deficiencies in the budget.

3) It helps you to decrease spending level after reviewing variances in the budget.

4) It is also useful to avoid expected loss in future.

Disadvantages =

1) Flexible budget shows variances between budgets but it does not elaborate the detail or the main reasons of the variances which could be covered.

2) Flexible budget is prepared on specific time for example quarterly or half yearly etc.

3) The main disadvantage of flexible budget is that if it shows unfavorable condition of the budget it will impose bad impact on investors or consumers.


4) Wrong or unprofessional budget preparation may also leads to the poor impression of the company which may cause loss for the company. 

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