A flexible budget consists of a series of budgets for different levels of activity that accounts for unplanned business condition changes. It segregates costs into fixed, semi-fixed, and variable categories. For example, a company's rabbit toy sales may be 10,000 one month, 8,000 the next month, and 12,000 another month. A flexible budget would show fixed costs like depreciation and electricity alongside variable costs like materials and labor and semi-fixed costs like phone charges. It also displays metrics like sales, contribution, fixed costs, and profit/loss at different activity levels like 60%, 80%, and 100% capacity.

1. Presented By:
AHMED
BHUMIKA
ADIL

2. FLEXIBLE BUDGET CONSIST OF SERIES OF BUDGET DIFFERENT
LEVEL OF ACTIVITIES ,IT IS PREPARED AFTER TAKING INTO
ACCOUNT UNFORCED CHANGES IN THE CONDITION OF BUSINESS.
E.g. :-
In a month bunnies may sale 10,000 units & next month sale 8000 units & 3 month
12000 units & so on.
If Flexible budget we segregate . The cost between fixed cost , semi fixed cost &
variable cost.
E.g. of fixed cost are – depreciation electricity charge.
E.g. of variable cost – Direct Material labor Etc.
E.g. of semi fixed cost – telephone charge.

3. 60% 80% 100%
1) Sale
2) Variable Cost/Marginal Cost
3) Contribution
4) Fixed Cost
5) Profit / Loss
6) Total Cost ( 2 + 4 )
(VARIABLE COST + FIXED COST)
CAPACITY