SalesA sales team has a fixed budget of $1 million for salaries and expenses. The budget also includes a variable allocation of up to 8% of revenue for sales commissions.
OperationsA factory has a fixed budget of $2 million dollars for costs that are predictable such as rent. They also have a variable budget for labor, materials and electricity based on the units produced per month.
StrategyA fashion brand wants to open up to 20 new locations in Asia. However, they only open a new shop when they can find a perfect location for the brand at a reasonable cost. The budget for the strategy is specified as up to $3 million per shop with a limit of 20 shops in the year.
|Overview: Flexible Budget
A budget that changes according to business or activity volumes.