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Flexible Budgets: Design and Budget Elements

1. Design and Budget Elements of Proposal Paper

Choose a proposal type and prepare a 1050- to 1750-word paper selecting one of the following elements in budget proposals:

a. Itemized budget
b. Non-itemized budget
c. Fixed budget
d. Flexible budget

Additionally, compare and contrast the four principles of design and discuss which principle would be most applicable for your proposal style and budget element.

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The response addresses the queries posted in 1552 words with references.

//Budgets are of many types like Flexi budget, Fixed budget and Itemized budget etc. Before discussing about the flexi budget, we should get an adequate knowledge about budget. Here, we will discuss about the budget.//

Budget refers to a list of future expenses and revenues. Budget is made for the future and is the part of planning. Budget has a predefined period. Organizations use the budget as a control tool. Companies make a budget and allocate the estimated future expenses and revenues to the particular department. If the actual expenses are more than the allocated expenses, the management can check out the reasons as why the actual expenses are higher than the budgeted expenses. If there are any loopholes in the departments or the performance of the departments are not up to the mark, the upper level management can provide necessary instructions to the departments to take corrective actions and maintain the performance of the departments.

A company can also evaluate the revenue of the company against the forecasted revenue. The budget is also valuable in the cash management of the company. Through the budget, an organization calculates its future financial requirements. If the company needs the cash in future, it can arrange the cash as per the pre determined budget. So, this is an imperative tool for the management. An organization makes the budget for whole organization as well as for separate departments like sales department, finance department etc (Caplan)

//After discussing the budget, we have gained an appropriate knowledge as how budget is important6s for the organization. Now, as per the instruction, we will move further and discuss about the flexi budget. This is only a brief knowledge, you can add more information to this//

Flexible budget is a budget in which change can be made according to the change in the organizational condition. As we know that the market conditions are changeable and if any change takes place in the market, it also affects the organization business planning. So, in that condition the static budget is not useful for the company. Company has to change its budget policy according to the new needs and wants of business. Flexible budget is a tool by which we can easily make changes in the budget. Flexible budget avoids the limitations of the fixed or static budget.

Flexible budget is flexible according to change in the cost due to changes in the sales volume of ...

Solution Summary

This solution discusses the definition and uses of budgets, evaluates the advantages and disadvantages of the flexible budget and identifies the steps involved while making the flexible budget. The response addresses the queries posted in 1552 words with references.