Considering that over the years of its work, the hospital experienced significant fluctuations in operational volumes and activities, it uses a flexible budget. As noted by Baker, Baker, and Dworkin, flexible budgets are more adjustable compared to static ones and, therefore, allow forming a more realistic financial picture. Overall, the flexible budget provides an opportunity to capture changes in cost and revenue assumptions and then adapt to them accordingly. My hospital prefers flexible budgets mainly because of this advantage.
Do you believe your organization uses a flexible or a static budget? Why do you think so?
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Academic.Tips. (2021) 'Do you believe your organization uses a flexible or a static budget? Why do you think so'. 16 July.
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Academic.Tips. (2021, July 16). Do you believe your organization uses a flexible or a static budget? Why do you think so? https://academic.tips/question/do-you-believe-your-organization-uses-a-flexible-or-a-static-budget-why-do-you-think-so/
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Academic.Tips. 2021. "Do you believe your organization uses a flexible or a static budget? Why do you think so?" July 16, 2021. https://academic.tips/question/do-you-believe-your-organization-uses-a-flexible-or-a-static-budget-why-do-you-think-so/.
1. Academic.Tips. "Do you believe your organization uses a flexible or a static budget? Why do you think so?" July 16, 2021. https://academic.tips/question/do-you-believe-your-organization-uses-a-flexible-or-a-static-budget-why-do-you-think-so/.
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Academic.Tips. "Do you believe your organization uses a flexible or a static budget? Why do you think so?" July 16, 2021. https://academic.tips/question/do-you-believe-your-organization-uses-a-flexible-or-a-static-budget-why-do-you-think-so/.
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"Do you believe your organization uses a flexible or a static budget? Why do you think so?" Academic.Tips, 16 July 2021, academic.tips/question/do-you-believe-your-organization-uses-a-flexible-or-a-static-budget-why-do-you-think-so/.
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