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A budget that is based on the actual activity of a period is known as?
Wiki User
∙ 11y ago
SALES
Wiki User
∙ 11y ago
Anonymous
Masters budget
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What variance is the difference between the actual sales and the flexible budget sales?
Actual sales (quantity ) = flexible budget sales (quantity ) , because the flexible budget is prepared based on the actual activity level (units sold ) to avoid misleading of compering the static budget sales and actual sales
What are budget figures based on?
Budget figures may be based on actual, budgeted, or standard costs. These categories are not mutually exclusive.
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
How would you describe an activity-based budget?
Activity-based budgeting is a technique that focuses on costs of activities or cost drivers necessary for production and sales. Such an approach facilitates continuous improvement.
What is the difference between activity based budgeting and traditional budgeting?
The activity based budgeting will give a percentage of the budget to the sections that are the most used. Traditional just splits it all up evenly.
What variance is the difference between the actual sales and the flexible budget sales?
Actual sales (quantity ) = flexible budget sales (quantity ) , because the flexible budget is prepared based on the actual activity level (units sold ) to avoid misleading of compering the static budget sales and actual sales
What are budget figures based on?
Budget figures may be based on actual, budgeted, or standard costs. These categories are not mutually exclusive.
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
Definition of incremental budgeting system?
This is a budget prepared using a previous period's budget or actual performance as a basis with incremental amounts added for the new budget period • The allocation of resources is based upon allocations from the previous period. • This approach is not recommended as it fails to take into account changing circumstances • Moreover it encourages "spending up to the budget" to ensure a reasonable allocation in the next period. It leads to a "spend it or lose" mentality.
What incremental budgeting?
Incremental Budgeting is a system that uses the previous period's budget (or actual performance) as a basis for the next period's budget. Incremental amounts are added to the previous period's budget for the new budget period. Since this is based on allocations from the previous period and is progressive it could lead to a "spend it or lose it" attitude which is not very cost effective for an organization. It doesn't take into consideration changing circumstances either. The only real advantage is it is simple and change is gradual.
How would you describe an activity based budget?
Activity-based budgeting is a technique that focuses on costs of activities or cost drivers necessary for production and sales. Such an approach facilitates continuous improvement.
How would you describe an activity-based budget?
Activity-based budgeting is a technique that focuses on costs of activities or cost drivers necessary for production and sales. Such an approach facilitates continuous improvement.
What is the difference between activity based budgeting and traditional budgeting?
The activity based budgeting will give a percentage of the budget to the sections that are the most used. Traditional just splits it all up evenly.
Is Paranormal Activity a real movie?
It is a real movie, however, it was not based on actual events.
Differences between fixed variable budgets?
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.
How does management use an operating budget How do they use an activity based budget What are the similarities and differences between these types of budgets?
The key to a successful financial reporting system is an operating budget in order to compare your actual operating results. Managers use the operating budget for planning in setting goals and developing strategies to achieve those goals. Budget will demonstrate how resources will be developed to implement strategy. Managers use the operating budget for strategy, long-run planning strategic plans, long-run budgets, short-turn planning operating plans, and short-run budgets. The operating budget will aid management for a specific period and [b] an aid to coordinating that needs to be done to implement that plan.
If you have actual how do you get flexible budget?
Flexible budgets are prepared for different capacity levels like normal capacity, optimistic capacity and pesimistic capacity based on actual budgets.
