Flexible budgets are a type of budget that can be easily modified if necessary. This type of budget is ideal for businesses that have changing sales or production levels from month to month. With a flexible budget, businesses can allocate resources and set spending limits in line with their current income stream.

Static budgets, on the other hand, are designed to remain the same over a certain period of time. Businesses typically use this type of budget when they know their spending needs will not change significantly during the budgeted period. This budgeting method allows businesses to focus on long-term planning and ensure there is enough money available for specific projects.