Flexible budget system a practical approach to cost management.

Flexible budgeting is a relatively simple way to introduce department heads to the complex world of cost management. Managers use a flexible budget system to set financial targets for their department and track progress towards those goals. This system gives instant feedback on a department's performance in terms of staffing hours and dollars. Full cooperation is key to a flexible budgeting system's success. Department managers must be involved in every step of the process--from educating and training staff members to determining cost variables.