Flexible Budget

1. The ductile compute is a exertion evaluation scratch. A tractile reckon adjusts the static reckon for the actual discover of output. The flexible bud model asks the question: ?If I had known at the beginning of the period what my output volume ( building block of measurements produced or units sold) would be, what would my budget have looked like??2. The steps to developing a flexible budget argon:Step 1: put the operation king and the relevant range of employment. The activity index is come up to advertise hours. Step 2: light upon the variable make ups, and coiffure the budgeted variable live per unit of activity for each cost. in that location are trine variable costs. The variable cost per unit is found by dividing each conglomeration budgeted cost by the postulate labor hours used in preparing the master budgetStep 3: Identify the refractory costs, and determine the budgeted get along for each cost. in that location are three rigid costs. Since Fox desires monthly budget data, the budgeted amount is found by dividing each annual budgeted cost by 12. Step 4: Prepare the budget for selected increments of activity at heart the relevant range. 3. The information found on a flexible budget theme are things such as fixed costs, variable costs times the activity which is adequate to the total budget costs.

The flexible budget answer for consists of twain sections: (1) output signal data for a selected activity index, such as direct labor hours, and (2) cost data for variable and fixed costs. The report provides a basis for evaluating a manager?s proceeding in two areas: production control and cost control. The re! port clearly provides a reliable basis. 4. The flexible budget responds to changes in activity, and may provide a better tool for performance evaluation. It is driven by the expected cost behavior. mulish grind overhead is the same no matter the activity... If you loss to get a full essay, order it on our website: OrderCustomPaper.com

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