Explain the Difference Between a Flexible Budget and Master Budget

question 55

Essay

Explain the difference between a flexible budget and master budget.

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Definitions:

Organic Structure

A flexible, decentralized organizational design that emphasizes informal networks of communication and empowers employees to take decisions.

Growth

The process of increasing in size, value, or importance.

Span of Control

Refers to the number of subordinates or tasks directly supervised or overseen by one manager or leader.

Centralization

The concentration of control, decision-making, or authority in a particular location or among a specific group of individuals.