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Distinguish between line and staff relationships?
The difference between line and staff relationships is the chain of command. In a line organization the top management has complete control and the chain of command is very clear.
What is budget realignment?
It's modifying your budget in line with your necessary costs and incoming revenue. It's best to check and tweek your budget on an annual basis.
What is the term for a budget that starts with the absolute necessities and debt payments and then adds expenditures until there is no more cash?
zero-based budget
What information from a flexible budget is used to evaluate performance?
Using a Budget to Evaluate PerformanceSo, what happens when the period's over? At period end, it's time to determine whether we fell in line with our planned expenditures. That's when a flexible budget is used. A flexible budget is a budget with figures that are based on actual output. It's then compared to a company's static budget to get variances (differences) between what level of spending was expected and what actually occurred.With a flexible budget, budgeted dollar values (i.e. costs or selling prices) are multiplied by actual units to determine what particular number will be given to a level of output or sales. This yields the total variable costs involved in production. The second component of the flexible budget is the fixed cost. Typically, the fixed cost does not differ between the static and flexible budgets.There are tons of variances that can arise in the static budgeting system. The two most basic variances are the flexible budget variance and sales-volume variance. The flexible budget variance compares the flexible budget to actual results to determine the effects that prices or costs have had on operations. The sales volume variance compares the flexible budget to the static budget to determine the effect that a company's level of activity had on its operations. From these two budgets, a company can develop individual flexible and static budgets for any element of its operations. For example, the static budget variance is the difference between the static budget and the company's actual results. The variances are always classified as either favorable or unfavorable.If sales volume variance is unfavorable (flexible budget is less than static budget), the company's sales (or production with a production volume variance) will turn out to be less than anticipated. If, however, the flexible budget variance was unfavorable (the variance effects eventual cash flows negatively) this would be a result of price or cost. By knowing where the company is falling short or exceeding the mark, managers can do a better job of evaluating the company's performance and use the information to make changes to fu
What steps can be taken to prevent budgetary slack?
budget slack can be prevented by good alignment between budgeting process and the organization's strategy which achieved by communication and coordination between top management and line managers or strategic business units to ensure that all line managers have the same perspective about achieving the organizational goals.good implementation of budgetary control also plays a role in preventing budgetary slack.
What is the difference between an isocost curve and an isocost line?
the answer
ISOcost line is also called as profit line?
no
What is difference between indifference curve and budget line?
budget line shows purchasing power of an consumer but indifference curve show willingness of consumer for two commodities.
Define isocost line?
A line along which the cost of something -- usually a combination of two factors of production -- is constant. Since these are usually drawn for given prices, which are therefore constant along the line, an isocost line is usually a straight line, with slope equal to the ratio of the (factor) prices.
What is the difference between a line and a line segment?
Yes there is a large difference between the two. A line has no end and a line segment ends.
What is the difference between a trend line and a line of best fit and how are they useful in analyzing data?
What is the difference between a trend line and a line of best fit
What is the Difference between a demand curve and a budget line?
demand curve shows quantities that the consumer is willing and able to buy at various prices in a given period of time,other things being equal. Whereas, a budget line is a graph showing all the possible combinations of two goods that can be purchased at given prices and for a given budget.
The difference between a tanget and a straight line?
its difference
What is Isocost line Discuss the shifting of isocost line?
Isocost Lines Recall that a universally accepted objective of any firm is to maximise profit. If the firm maximises profit, it will necessarily minimise cost for producing a given level of output or maximise output for a given level of cost. Suppose there are 2 inputs: capital (K) and labour (L) that are variable in the relevant time period. What combination of (K,L) should the firm choose in order to maximise output for a given level of cost? If there are 2 inputs, K,L, then given the price of capital (P k ) and the price of labour (P L ), it is possible to determine the alternative combinations of (K,L) that can be purchased for a given level of expenditure. Suppose C is total expenditure, then C= P L * L + P k * K This linear function can be plotted on a graph. ISOCOST K C/P k A B O C/P L L • N • P Figure 7.7: Isocost line If only capital is purchased, then the maximum amount that can be bought is C/P k shown by point A in figure 7.7. If only labour is purchased, then the maximum amount of labour that can be purchased is C/P L shown by point B in the figure. The 2 points A and B can be joined by a straight line. This straight line is called the isocost line or equal cost line. It shows the alternative combinations of (K,L) that can be purchased for the given expenditure level C. Any point to the right and above the isocost is not attainable as it involves a level of expenditure greater than C and any point to the left and below the isocost such as P is attainable, although it implies the firm is spending less than C. You should verify that the slope of the isocost is 1 - k L k L P P P C * P C ∆ L ∆ K EXAMPLE : Consider the following data: P L = 10, P k = 20 Total Expenditure = 200. Let us first plot the various combinations of K and L that are possible. We 1 The nagative sign is due to the fact that the slope of the isocost is negative.15 consider only the case when the firm spends the entire budget of 200. The alternative combinations are shown in the figure (7.8). P r o d u c t i o n F u n c t i o n K A 10 9 8 7 6 5 4 3 2 1 O B L C 2 4 6 8 1 0 1 2 1 4 1 6 1 8 2 0 Figure 7.8: Shifting of Isocost The slope of this isocost is -½. What will happen if labour becomes more expensive say P L increases to 20? Obviously with the same budget the firm can now purchase lesser units of labour. The isocost still meets the Y-axis at point A (because the price of capital is unchanged), but shifts inwards in the direction of the arrow to meet the X-axis at point C. The slope therefore changes to -1. You should work out the effect on the isocost curve on the following: (i) decrease in the price of labour (ii) increase in the price of capital (iii) decrease in the price of capital (iv) increase in the firms budget with no change in the price of labour and capital
What is the difference between parallel and perpendicular line on rectangle?
The difference between a perpendicular line and a parallel line is that a perpendicular line crosses or joins, while a parallel line doesn't touch at all.
What is the difference between a Diagonal line and an oblique line?
none
What is the difference between single line diagram and one line diagram?
There is no difference...same thing
