Fixed Budget

Fixed Budget? - A fixed budget is one used by a company that has no allowances for possible changes in their budgetary needs. This is practical where a company has some reasonable control over any possible expenses. And can forecast with some degree off accuracy what their potential costs may be for a given period. However, this means normally doesn’t have much success when the company has too many variables in its future expenses that can’t be predicted. In such cases any type of fixed budget would not serve as a realistic fiscal plan for that given company for its operating purposes.