|
Types of Budget |
- Fixed Budget.
- Flexible Budget.
- Master Budget.
- Functional Budget.
- Long Term Budget.
- Short Term Budget.
- Current Budget.
|
| Fixed Budget |
| A fixed budget is the budget designed to remain unchanged irrespective of level of activity actually attained. Such budget is suitable for Fixed Expenses. It is also known as Static budget. |
| A fixed budget is not suitable in dynamic environment and for a longer period because of its rigidity. It is not suitable where labour cost, material cost and other factors are constantly changing. |
