Sales
A 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.Operations
A 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.Strategy
A 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 | ||
Type | ||
Definition | A budget that changes according to business or activity volumes. | |
Related Concepts | ||
