Flexible budgeting is a financial planning technique that takes into account changing market conditions and customer demand. It helps businesses adjust their spending plans accordingly, while still working within their established goals and objectives. The flexible budgeting formula utilizes both current and projected data to determine how much money should be allocated for specific costs. This means that businesses can adjust their budgets without affecting the overall goals of the company. By carefully monitoring economic factors and customer needs, companies can effectively evaluate where funds are needed most. With flexible budgeting, businesses have the ability to quickly adapt to changing conditions and remain fiscally sound.