Group, there are two basic types of budgets, the master (static) budget and the following flexible budget (used to adjust for sales volume). Both are important! Our question asks about what happens if we budget poorly. Did you know that the master budget is built from plans from every department? If we're off, we could hire too many people, or not enough, order too many supplies, or not enough! You get the idea.
Does anyone have experience with flexible budgets they would like to share with the group? Perhaps even your personal budget at home?