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What is the Purpose of the flexible budget?
compare actual and budgeted results at virtually every level of production
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.
What is the past tense of budget?
The past tense of budget is budgeted.
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.
Which budget is NOT necessary to prepare the budgeted balance sheet?
budget statement of cash flow
What is the Purpose of the flexible budget?
compare actual and budgeted results at virtually every level of production
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.
What is the past tense of budget?
The past tense of budget is budgeted.
Foraging societies the largest share of peoples budget usually is devoted to?
Basic needs, such as food and shelter. Budget does not always refer to dollar amounts, in foraging societies, their energy and work ability is what is "budgeted"
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.
Which budget is NOT necessary to prepare the budgeted balance sheet?
budget statement of cash flow
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.
How do you prepare a Budgeted Balance Sheet?
how to prepare a budget for a fundraiser
Is the budgeted income statement prepared before the sales budget?
Budgeted income statement is prepared at the last after preparing all other budgets and sales budget is the starting point of budgeting process.
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.
How do you do a budgeted income statement for a merchandising firm?
To do a budgeted income statement for a merchandising firm you will need to look over their sales budget and cash budget. You will also need to prepare a finished goods inventory and come up with an administrative expense budget.?æ
What does it mean to cut the budget?
It means that less money will be budgeted than in the previous year. Thus, the phrase, "cut the budget", indicates that one or more areas of a budgeted total amount of money will need to be reduced.
