Definition: is a financial plan that is used to project the specific limits of a business’s expense budget. It implies that a business should remain in those budget limitations despite any changes that may occur during the actual financial activities. The process of planning the fixed budget is closely linked to such factors as estimating and measuring potential profits, predicting a business’s performance, keeping down the expenses, and allowing changes strictly within the budget limits. It is common for numerous companies to deal with noticeable variations between their fixed estimated budget and the actual results unless a company is not operating in a very stable market with relatively predictable revenues.
In a Sentence:
The fixed budget for the next year has been established. Now we have to work around it.
The numbers in the fixed budget plan differ from our actual expenses.
Planning a fixed budget will allow us to save some money and use it for the future projects.
Synonyms and related words: static budget, flexible budget, budget plan, budgeting, financial plan, expense budget