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What three criteria should be used when selecting an activity base for constructing a flexible budget?
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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.
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
Is it best to choose an activity measured in dollars when choosing an acitivy measure for flexible budgets?
The activity base should not be expressed in dollars or other currency. For example, direct labor cost is usually a poor choice for an activity base in flexible budgets. Changes in wage rates affect the activity base but do not usually result in a proportionate change in overhead. Therefore, it is normally best to use physical, rather than financial, measures of activity in flexible budgets..Answer - NO
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.
A major weakness of flexible budgets is?
they force the manager to compare actual costs at one level of activity to budgeted costs at a different level of activity.
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.
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
Identify the different criteria by which organization can compensate employees?
Pay Reward Promotion recognition flexible time
Is it best to choose an activity measured in dollars when choosing an acitivy measure for flexible budgets?
The activity base should not be expressed in dollars or other currency. For example, direct labor cost is usually a poor choice for an activity base in flexible budgets. Changes in wage rates affect the activity base but do not usually result in a proportionate change in overhead. Therefore, it is normally best to use physical, rather than financial, measures of activity in flexible budgets..Answer - NO
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.
A major weakness of flexible budgets is?
they force the manager to compare actual costs at one level of activity to budgeted costs at a different level of activity.
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 an example of a physical activity that will help your body stay flexible?
There are several, including yoga, pilates, and dance.
What does activity-level variances plus flexible-budget variances equal?
total master-budget variances
How difficult is it to get a flexible mortgage?
The difficulty of getting a flexible mortgage depends on your own personal circumstances. A degree of extra security is required to meet terms and conditions so that you can prove you can make the flexibility of payments. Not difficult if you fit the criteria.
What is the difference between a rolling budget and a flexible budget?
Here are the differences between the two: Flexible Budget-A flexible budget is a budget that adjusts or flexes for changes in the volume of activity. The flexible budget is more sophisticated and useful than a static budget, which remains at one amount regardless of the volume of activity. Rolling Budget-Method in which a budget established at the beginning of an accounting period is continually amended to reflect variances that arise due to changing circumstances. Hope this helps!
Explain how a fixed cash budget differs from a variable or flexible cash budget?
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...
