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in this video I am going to explain flexible budget or say flexible budget is a budget which is designed in such a way that it may be changed according to the change in the level of activity see this particular budget is prepared according to the changing capacity or different capacity or different activity so according to the capacity of activity will have a different cost this type of budget is called flexible budget a flexible budget means a budget which by recognizing the difference between fixer semi variable and variable cost is designed to change in relation to the level of activity attainder so in order to prepare flexible budget the first essential thing is the cost or segregated into three categories Fitzer cost variable cost and semi variable cost so fixture cost means the particular cost remains same irrespective of the levels of activity attainder whatever may be the capacity or whatever may be the activity some our particular cost will be remind same in all set of activi