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Explain how a fixed cash budget differs from a variable or flexible cash budget?
Wiki User
∙ 15y ago
fixed budget is prepared at the start of the period and flexible budget is prepared at the end of period it is adjusted from current activity level of company...
Wiki User
∙ 15y ago
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Explain how a activity based flexible budget differs from a conventional flexible budget?
there are some difference among activity based flexible budget and conventional fllexible budget, the main differ is number of cost driver that use to allocat OHC, so my dissertation about this subject
Explain difference between fixed and flexible budget?
Fixed Budget Flexible Budget Fixed budget is inflexible and does not change with the actual volume of output achieved. Flexible budget can be suitably recasted quickly according to level of activity attained. Fixed budget assumes that conditions would remain static. Flexible budget is design to change according to changed conditions. Costs are not classified according to their variability i.e. fixed, variable and semi variable. Coasts are classified according to the nature of their variability. Comparison of actual and budgeted performance cannot be done correctly if the volume of output differs. Comparisons are realistic as the changed plan figures are placed against actual ones. It is difficult o forecast accurately the resultsin it. Flexible budget clearly shows the impact of various expenses on the operational aspects of the business. Only one budget at a fixed level of activity is prepared due to an unrealistic expectation on the part of the management Series of budgets are prepared at different level of activities. Fixed budget has a limited application and is inefficient as a tool for cost control. Flexible budget has more application and can be used as a tool for cost control. If the budgeted and actual activity levels vary, the correct ascertainment os coasts and fixation of prices becomes difficult. Flexible budget helps in fixation of prices and submission of tenders due to correct ascertainment of coasts.
The flex in the flexible budget relates solely to variable costs?
The flex in the flexible budget relates solely to variable costs such that it uses percentages of revenue for certain expenses. Flex budget is used rather that the usual fixed numbers to allow for an infinite series of changes in budgeted expenses that are directly tied to actual revenue incurred.
What are the steps to developing a flexible budget?
The flexible budget uses the master budget as its basis. To develop the flexible budget, management should take the following steps. 1. Identify the activity index and the relevant range of activity. 2. Identify the variable costs, and determine the budgeted variable cost per unit of activity for each cost. 3. Identify the fixed costs, and determine the budgeted amount for each cost. 4. Prepare the budget for selected increments of activity within the relevant range.
A flexible budget performance report should contain fixed as well as variable and mixed costs true or false?
T
Explain how a activity based flexible budget differs from a conventional flexible budget?
there are some difference among activity based flexible budget and conventional fllexible budget, the main differ is number of cost driver that use to allocat OHC, so my dissertation about this subject
Explain difference between fixed and flexible budget?
Fixed Budget Flexible Budget Fixed budget is inflexible and does not change with the actual volume of output achieved. Flexible budget can be suitably recasted quickly according to level of activity attained. Fixed budget assumes that conditions would remain static. Flexible budget is design to change according to changed conditions. Costs are not classified according to their variability i.e. fixed, variable and semi variable. Coasts are classified according to the nature of their variability. Comparison of actual and budgeted performance cannot be done correctly if the volume of output differs. Comparisons are realistic as the changed plan figures are placed against actual ones. It is difficult o forecast accurately the resultsin it. Flexible budget clearly shows the impact of various expenses on the operational aspects of the business. Only one budget at a fixed level of activity is prepared due to an unrealistic expectation on the part of the management Series of budgets are prepared at different level of activities. Fixed budget has a limited application and is inefficient as a tool for cost control. Flexible budget has more application and can be used as a tool for cost control. If the budgeted and actual activity levels vary, the correct ascertainment os coasts and fixation of prices becomes difficult. Flexible budget helps in fixation of prices and submission of tenders due to correct ascertainment of coasts.
The flex in the flexible budget relates solely to variable costs?
The flex in the flexible budget relates solely to variable costs such that it uses percentages of revenue for certain expenses. Flex budget is used rather that the usual fixed numbers to allow for an infinite series of changes in budgeted expenses that are directly tied to actual revenue incurred.
What is flexible budget equation?
Total costs = Fixed Costs + Per-Unit-Variable Cost x # Units
What are the steps to developing a flexible budget?
The flexible budget uses the master budget as its basis. To develop the flexible budget, management should take the following steps. 1. Identify the activity index and the relevant range of activity. 2. Identify the variable costs, and determine the budgeted variable cost per unit of activity for each cost. 3. Identify the fixed costs, and determine the budgeted amount for each cost. 4. Prepare the budget for selected increments of activity within the relevant range.
A flexible budget performance report should contain fixed as well as variable and mixed costs true or false?
T
What information is found on a flexible budget report?
Flexible budget reports are another type of internal report. The flexible budget report consists of two sections: (1) production data for a selected activity index, such as direct labor hours, and (2) cost data for variable and fixed costs. The report provides a basis for evaluating a manager's performance in two areas: production control and cost control. Flexible budget reports are widely used in production and service departments.
Is Static planning budget and flexible budget or Flexible budget and actual results comparisons that best isolates the impact that changes in prices of inputs and outputs have on performance?
flexible budget and actual results
The main difference a flexible budget and a static budget is that a flexible budget does not contain fixed costs true or false?
true
What is flexible budget?
Fixed or Static buget is for a particular activity level. Flexible budget is for a range of activity level. Differentiate between Fixed and Flexible budget ? Needs a complete answer.
What would the flexible budget amount be if the master budget revenue was 250000 and the actual results were 254800 and how do you get the answer?
With flexible budget, you check whether the actual activity level is within the range of activity for flexible budget. If yes, then you compare very easily. Just extrapolate your budget for the actual activity level. Only Variable costs needs to be updated (as Fixed costs remain same for a particular activity level). Finally you have the actual results and budgeted results, both on the same activity level. This provides you the ground for comparing the both.
What is the difference between a fixed budget and a flexible budget?
is a plan for a single level of production, whereas a flexible budget can be converted to any level of production.
