Difference Between Fixed Budget And Flexible Budget. The budget designed to change with the change in the activity levels is flexible budget. But, in practice, the level of activity and set conditions will change as a result.
In the traditional approach of budgeting, each activity of the business is supposed to remain static. It is inflexible and does not change with the actual volume of output achieved. Differences between “fixed budget” and “flexible budget” are as follows:
