Complete the following reaction and provide a detailed,step-by-step mechanism for the process. 
Definitions:
Fixed Costs
Fixed costs are business expenses that remain constant regardless of changes in production level or sales volume, such as rent, salaries, or insurance.
Budgeting
The process of creating a plan to spend money, outlining an organization's financial and operational goals.
Flexible Budget
A budget that molds itself to fit changes in the volume or intensity of activity.
Other Expenses
Costs not directly related to the production or selling of goods and services, such as interest expenses and loss from foreign exchange.
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