Question

What financial statements will you utilize in making your proposal, and how will you use these statements? What impact will your proposal have on the organization’s financial statements? Articulate the impact using appropriate terminology. How would your proposal be different if using a flexed budget versus a fixed budget? In other words, how would the use of one type of budget versus the other impact your proposal, and how would your proposal impact the budget? (Evaluate the differences between a fixed and a flexed budget.)

Answer 1

Point of difference	Fixed Budget	Flexed Budget
Meaning	Also referred to as a static budget, this type of budget does not reflect the actual level of activity, and remains the same regardless.	This type of budget can be adjusted or 'flexed' to reflect any changes in level of activity.
Activity level	Unaffected by activity level	Changes with any change in level of activity
Ease of comparison	Actual performance evaluation may not be very easy, as the activity levels may vary.	Evaluation of performance is easy, as the budget relates to the actual level of activity.
Modification	As the name suggests, fixed budgets are rigid and are not open to modification	These budgets may be modified as per requirement.
Computations	The figures are based on approximations and are based on several assumptions	These figures reflect circumstances and are realistic.

Note: I'm assuming this relates to another question. There isn't enough information to answer the first two questions. I have evaluated the differences between fixed and flexed budgets for your reference.