Discuss the preference for the use of Flexible Budgets instead of Static Budgets

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ekkarill92 answered 1 year ago

Flexible budgets vs static budgets What is the difference between an flexible budget and a static...

Flexible budgets vs static budgets What is the difference between an flexible budget and a static budget? What is a flexible budget? (6 senteces or more)

HammerTime is preparing their 2019 budget. They want to look at static budgets and flexible budgets...

HammerTime is preparing their 2019 budget. They want to look at static budgets and flexible budgets to determine which is best for them. They estimate sales/production will be between 2,000,000 and 4,000,000 boxes of nails per month. They want to be able to understand their budget variances as well. Question 1: Prepare some budgets in Excel for HammerTime. a) Show the static budget based on 3,000,000 units (boxes) produced. b) Show the flexible budget based on 2,000,000 units (boxes) produced....

4. What are the differences between fixed (static) and flexible budgets?

Question 1 Distinguish between static and flexible budgets and explain the advantages of using a flexible...

Question 1 Distinguish between static and flexible budgets and explain the advantages of using a flexible budget for control, compared with using a static budget.

You learned Static (fixed) Budgets in chapter 7, Flexible Budgets and Standard Costs (favorable & unfavorable...

You learned Static (fixed) Budgets in chapter 7, Flexible Budgets and Standard Costs (favorable & unfavorable variances) in chapter 8; Now describe an example of how an unfavorable variance between actual and budget amounts in a fixed static (master) budget can become a favorable variance in a flexible budget report. Also, since flexible budget is more accurate in measuring performance, can company just develop flexible budget without the static budget? Why or why not?

As a manager, discuss how you would use or have used the concept of (flexible budgets...

As a manager, discuss how you would use or have used the concept of (flexible budgets and performance analysis) and (standard costs and variances) Why might managers find a flexible-budget analysis more informative than static-budget analysis? How might a manager gain insight into the causes of flexible-budget variances for direct materials, labor, and overhead? Provide at least one numerical example to support your thoughts.

What is a flexible budget? What types of organizations might use flexible budgets? Why are flexible...

What is a flexible budget? What types of organizations might use flexible budgets? Why are flexible budgets useful?

Here are the 2017 revenues for Nu-Kim Radiology for four different budgets: Static Flexible Enrollment &...

Here are the 2017 revenues for Nu-Kim Radiology for four different budgets: Static Flexible Enrollment & Utilization Flexible Enrollment Actual Budget Budget Budget Results $150,000 $140,000 $156,000 $162,000 Calculate the following: Interpret each variance: 1) Revenue Variance – 2) Volume Variance – 3) Price – 4) Enrollment Variance – 5) Utilization Variance –

true/ false 1. When a comparison of static and flexible budgets shows an unfavorable sales volume...

true/ false 1. When a comparison of static and flexible budgets shows an unfavorable sales volume variance, the variable cost volume variances will also be unfavorable. 2. The differences between the standard and actual amounts are called variances. 3. The best standards to include in a standard cost system are ideal standards. 4. If the master budget prepared at a volume level of 20,000 units includes factory rent of $40,000, a flexible budget based on a volume of 21,000 units...

Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system....

Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit. Actual Budgeted Units sold 1,482,000 1,500,000 Variable costs 2,815,000 3,000,000 Fixed costs 2,490,000 2,425,000 a. Prepare the actual income statement, flexible budget, and static budget. Do not use negative signs with any of your answers below. Actual Results Flexible Budget Static Budget Units sold Answer Answer Answer...

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