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they force the manager to compare actual costs at one level of activity to budgeted costs at a different level of activity.
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∙ 15y ago
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If you have actual how do you get flexible budget?
Flexible budgets are prepared for different capacity levels like normal capacity, optimistic capacity and pesimistic capacity based on actual budgets.
Is it best to choose an activity measured in dollars when choosing an acitivy measure for flexible budgets?
The activity base should not be expressed in dollars or other currency. For example, direct labor cost is usually a poor choice for an activity base in flexible budgets. Changes in wage rates affect the activity base but do not usually result in a proportionate change in overhead. Therefore, it is normally best to use physical, rather than financial, measures of activity in flexible budgets..Answer - NO
What is the disadvantages of cash budgets?
Distortion is caused by cash budgets. Influence of non-financial factors will also affect the final decisions when it comes to cash budgets. Cash budgets are vulnerable to manipulations. The major disadvantage is that cash budget relies on estimates.
What is the disadvantage of budgeting?
Distortion is caused by cash budgets. Influence of non-financial factors will also affect the final decisions when it comes to cash budgets. Cash budgets are vulnerable to manipulations. The major disadvantage is that cash budget relies on estimates.
The similarities and differences between standards and budgets?
One similarity between standards and budgets is they are both predetermined costs. A major difference is that companies can report inventories using standard costs but not budget costs.
What are fixed and flexible budgets?
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If you have actual how do you get flexible budget?
Flexible budgets are prepared for different capacity levels like normal capacity, optimistic capacity and pesimistic capacity based on actual budgets.
What is a major weakness of partnership?
a major weakness of a partnershipis
What is the major weakness of a partnership?
a major weakness of a partnershipis
Is it best to choose an activity measured in dollars when choosing an acitivy measure for flexible budgets?
The activity base should not be expressed in dollars or other currency. For example, direct labor cost is usually a poor choice for an activity base in flexible budgets. Changes in wage rates affect the activity base but do not usually result in a proportionate change in overhead. Therefore, it is normally best to use physical, rather than financial, measures of activity in flexible budgets..Answer - NO
What is the disadvantages of cash budgets?
Distortion is caused by cash budgets. Influence of non-financial factors will also affect the final decisions when it comes to cash budgets. Cash budgets are vulnerable to manipulations. The major disadvantage is that cash budget relies on estimates.
What are major services performed by public accountants?
Bookkeeping, mergers, and budgets
What was a major weakness of the article of conderation?
war
What is the major weakness of television today?
obesity
What is the disadvantage of budgeting?
Distortion is caused by cash budgets. Influence of non-financial factors will also affect the final decisions when it comes to cash budgets. Cash budgets are vulnerable to manipulations. The major disadvantage is that cash budget relies on estimates.
What are major strengths and weakness of a professor?
Major strengths and weakness of a professor vary from each person. Often professors have taught in a field but haven't had hands on experience that can be related to the students. This is a weakness. A strength is that the professors are very knowledgeable.
What is the weakness of cell wall?
A cell wall is flexible, but if too much strainis put on it, it will break. The cell dies.
