Final answer:
A flexible budget can indeed be prepared before or after a period, assisting with setting financial expectations and analyzing variances, and is an essential tool in financial management and planning.
Step-by-step explanation:
It is indeed true that a flexible budget can be prepared both before the period begins and after the period ends. Preparing the budget beforehand helps in setting targets and expectations based on projected performance levels and revenue. On the other hand, preparing a flexible budget after the period has ended allows for a comparison of actual performance against what was anticipated, thus providing a basis for analyzing variances and making appropriate adjustments for future budgeting.
Financial management and planning are critical for any organization or individual, and a flexible budget is an essential tool that aids both in proactive and reactive financial decision-making.
The federal budget, as established by the President of the United States, is a larger-scale example of budgeting that encompasses projected revenue (taxes) and expense (spending) to determine either a surplus or deficit for the fiscal year.