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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.
What is the difference between a budget and a financial report?
The main difference is, budget is a planned activity to meet the targets whereas financial report is the one which shows the health/wealth of the organization.
How can I effectively budget for non-recurring expenses?
To effectively budget for non-recurring expenses, you should identify and list all upcoming one-time costs, estimate their amounts, and allocate a portion of your income each month to a separate savings account or category specifically for these expenses. This way, you can be prepared and avoid financial strain when these expenses arise.
Is a budget always necessary Why?
If there is a limited amount of money, a budget is necessary. This means that a budget is almost always necessary. The reason is that a budget keeps spending in control. By knowing how much money can be spent on one thing, such as clothing, one can know that there will be money left over to buy another thing, such as groceries.
What are the elements of a budget?
If any one can answer this question please answer it
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 the budget activity code?
The IRS budget activity code is how Congress manages the agency besides the appropriation level. An appropriation may contain multiple BACs but always at least one.
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.
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.
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.
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!
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 the difference between a budget and a financial report?
The main difference is, budget is a planned activity to meet the targets whereas financial report is the one which shows the health/wealth of the organization.
What level of government finances education?
The Office of Budget and Management is normally the level that handles with education. The Education Department is the one that disperses money.
How do you calculate activity level?
how much Energy is kJ is needed for one hour of jogging
What set of digits represent the budget activity code?
The budget activity code is typically represented by a series of digits that indicate specific budgetary activities within an organization or government entity. These codes can vary by agency or program but generally consist of a combination of numbers that classify expenditures and funding sources. To find the precise set of digits for a particular budget activity code, one would need to refer to the relevant financial documentation or guidelines specific to that entity.
What was the Production Budget for The One?
The Production Budget for Year One was $60,000,000.
