Looking to help get more definition and clarification on the following topics below:

Flexible budget is a budget which can be adjusted when there are changes in its general assumptions in planning while static budget is a budget that remains the same even if there is a significant change in the assumptions of the planning.

Flexible budget is better for industries which costs and prices vary from time to time such as retail businesses.

Retail businesses are activity based which means activities are closely aligned with its costs. With the use of flexible budget, it can be a tool for the company to compare its actual activity to its projections and prepare various budgets at different levels of activity.