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The flexible budget report can be used to evaluate performance in two areas: production control and cost control.
The flexible budget report can be used to evaluate performance in two areas: production control and cost control.
management cost that involved budgeting and planning
A favorable difference.
Incremental Cash flows are included in capital budgeting decision and if capital budgeting decisions require acquisition of money from open market then its financial cost is also relevant for decision making and it is also included in it.
4. "Budgeting is the one of the main tool to control the cost" - Give your view.
The flexible budget report can be used to evaluate performance in two areas: production control and cost control.
The flexible budget report can be used to evaluate performance in two areas: production control and cost control.
Brent D. Bradley has written: 'Some views on program budgeting' -- subject(s): Program budgeting 'Building a new force structure cost analysis model' -- subject(s): Mathematical models, Cost control, Military planning
William Edgar Thomas has written: 'Readings in cost accounting, budgeting, and control' -- subject(s): Controllership, Budget in business, Cost accounting
capital budgeting decisions
J. D. McCullough has written: 'Cost analysis for planning, programming, budgeting cost-benefit studies' -- subject(s): Program budgeting
Variable budgeting is one based on different levels of activity. It is an extremely useful tool for comparing the actual cost incurred to the cost allowable for the activity level achieved. It is dynamic in nature rather than static. By using the cost-volume formula (or flexible budget formula), a series of budgets can be developed easily for various levels of activity. A static (FIXED) budget is geared for only one level of activity and has problems in cost control. Flexible budgeting distinguishes between fixed and variable costs, thus allowing for a budget that can be automatically adjusted (via changes in variable cost totals) to the particular level of activity actually attained. Thus variances between actual costs and budgeted costs are adjusted for volume ups and downs before differences due to price and quantity factors are computed. The primary use of the flexible budget is for accurate measure of performance by comparing actual costs for a given output with the budgeted costs for the same level of output.
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.
management cost that involved budgeting and planning
A favorable difference.
Leonard Stitelman has written: 'Cost utility analysis applied to library budgeting' -- subject(s): Program budgeting