Various types of budgets facilitate understanding of the big picture of a business. There are budgets that are set and unchangeable, as well as budgets that allow for variability.

• Explain 2 different types of budgets and discuss how they complement each other.
• What is the difference between a flexible budget and a static budget? Which one do you believe works better for a business you have worked for or about which you are familiar?

In your replies to others, share your knowledge and experiences with a specific type of budget. Include whether the budget was flexible or static.