FLEXIBLE BUDGETING
What are the reasons to use a flexible budget? What is the majordistinction between a static budget and a flexible budget?Illustrate the difference using a real-world example.
FLEXIBLE BUDGETING
What are the reasons to use a flexible budget? What is the majordistinction between a static budget and a flexible budget?Illustrate the difference using a real-world example.
Related questions
| Flexible Budgets |
| WRITE â a minimum of 200 words addressing the following questions: Flexible budgets provide different information than static budgets. Discuss some of these differences. Is a flexible budget always better? Are there times when youâd recommend using a static budget over a flexible budget? |
Match the variance to the correct definitions.
Cost Variance
Efficiency variance
Flexible budget variance
sales volume variance
static budget variance
| a. | The difference between the expected results in the flexible budget for the actual units sold and the static budget. |
| b. | The difference between actual results and the expected results in the flexible budget for the actual units sold. |
| c. | Measures how well the business keeps unit costs of material and labor inputs within standards. |
| d. | The difference between actual results and the expected results in the static budget. |
| e. | Measures how well the business uses its materials or human resources. |
