How can the manager of advertising sales at Google use flexible budgets to enhance performance?

Expert Solution

Flexible budget is a budget that adjusts according to changes in volume of activity.

Flexible budget will help manager to make for Valid comparision.Flexible budget is designed to show the expected revenue and the allowed expenditure for actual number of activities/units produced and sold.

In case of google, the flexible budget will help as per below suggestion.

1) The manager can forecast the the adverstisng sales revenue for the year on basis of historical data, signed agreement, discussion with potential customer.

2) The manager can compare this budget with actual revenue monthly, quarterly and accordingly revise his budget

3) The Advantage of this type of budgeting is it will help in identyfying if there are any difficulties in achieve our sales target earlier as well as it will not result in verhy high varaince at the end of the year. Also this will help the organisation to keep/shut down some of product line on basis result of this flexible budgeting excersie.

ekkarill92 answered 2 years ago

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