X.+Module+8000+Summary+and+Conclusions

=X. Module 8000 Summary and Conclusions ldm=

**__Summary:__**

Flexible budgets are beneficial to companies because they provide budget estimates based on differing levels of activity. This allows a company to plan by showing what its costs will be at each of these activity levels. This is different from a static budget which is created based on only one level of activity. Using flexible budgets, managers can examine several different scenarios before making decisions. Additionally, flexible budgets can be prepared based on a company’s actual level of activity. This budget can then be compared with actual costs to determine where variances exist. A company can use this to increase performance by determining where problems exist and making efforts to correct them.