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Fixed Budget
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∙ 12y ago
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What is a budget that is prepared for one level of activity?
The budget that is prepared for one level of activity is known as a static budget. A static budget is often one of many other budgets that are created off of a master budget.
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 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
A statistic planning budget is suitable for planning and for evaluating how well costs are controlled true or false?
A static planning budget is suitable for planning and for evaluating how well costs are controlled.
What is meant by Static budget?
Static budget is a budget which envisages only one level of business activity.Here business activity means volume of production or sales.The static budget is camparitively easy to prepare.It tends to be far less accurate then flexible budget.
What is a budget that is prepared for one level of activity?
The budget that is prepared for one level of activity is known as a static budget. A static budget is often one of many other budgets that are created off of a master budget.
What is another name for Static Electrictrity?
high eletorns
What is another name for a fixed partition?
Static Partition
Who uses static budget?
Management
What is another name for constant?
A fixed value or a static value.
Flexible budget against static budget?
abudget based on a single level of output
In what situations will a static budget be most effective in evaluating a manager?
A static budget be most effective in evaluating a manager for a few reasons. This might be the case if the store has been losing money and for once it is staying static.
What is another name for constant value?
A fixed value or a static value.
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 another name for Budget items mandated by law or by a previous obligation?
expenditures
What is another name for static memory and memory sticks?
USB memory keys or flash drives
