What is a flexible budget? A flexible budget is a budget that is a function of one or more levels of activities. The flexible budget is more intricate and useful than a normal budget‚ which remains at one amount regardless of the volume of the activities. · What are the steps to developing a flexible budget? The steps taken to develop a flexible budget are as follow: • Identify the activity index and the relevant range of activity. • Identify the variable costs‚ and determine
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3515 – MANAGEMENT ACCOUNTING SEM 1 2014/2015 FLEXIBLE BUDGETING 1. The following overhead data are for a department in a large company. Actual Costs Incurred Static Budget Activity level (in units) 200 220 Variable costs: Supplies $4‚050 $4‚906 Power $1‚690 $1‚892 Fixed costs: Administration $6‚240 $6‚200 Depreciation $6‚280 $6‚200 Required: Prepare a report that would be useful in assessing how well costs were controlled in this department. 2. Hempstead Corporation plans
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WHO JEANS STATIC BUDGET VARIANCE FOR THE MONTH JUST ENDED Income Statement line-item Budgeted amount per unit Static Budget (A) 10‚000 units Actual Results (B) 16‚000 units Static Budget Variance (A) – (B) Revenue Variable costs: Materials Labor Overhead Total Contribution margin Fixed costs: Manufacturing Overhead Marketing costs Total fixed costs Operating
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Electra Manufacturing‚ Inc.‚ produces control valves used in the production of oil field equipment. The control valves are sold to various gas and oil engineering companies throughout the United States. Projected sales in units for the coming four months are as follows: January ……………… 20‚000 February …………….. 25‚000 March ……………….. 30‚000 April ………………… 30‚000 The following data pertain to production policies and manufacturing specifications followed by Electra: a. Finished goods inventory on
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Flexible Budgets ACC/543 May 14‚ 2012 Write a paper of no more than 1‚050 words in which you discuss flexible budgets. Explain the relationship between fixed and variable costs used in a flexible budget. (SAID) Discuss the differences between static and flexible budgets and (Cynthia) how a flexible budget lends itself to a cost-volume-profit analysis. Intro and Conclusion/ Compile and Submit Format your paper consistent with APA guidelines Flexible
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Element 1 Prepare Budget Information Research Assignment. 1. Mountain View Hotel organisational chart‚ profit or cost center and people who are involved in the budget committee. People who involve in budget committee are: General Manager‚ Resident Manager‚ Sales and Marketing Manager‚ Food and beverage Manager‚ Hotel Accountant‚ Maintenance Manager‚ Front Office Manager and Housekeeping Manager. 2. As the Executive Chef you are responsible for developing your activity centers budget. The general
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ticket prices means that planes with 50 or 70 seats are no longer profitable‚ and consequently the company wants to purchase aircraft with 95 and 110 seats from manufacturers Bombardier and Embraer and fly them using lower-paid pilots from Lufthansa subsidiaries. The pilots’ union fears that this will gradually undermine all prevailing collective agreements. The upcoming industrial dispute goes “far beyond the scope of Lufthansa pilots‚” said Cockpit negotiator Thomas Sturm. The wage cuts agreed as
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CHAPTER 7 FLEXIBLE BUDGETS‚ DIRECT-COST VARIANCES‚ AND MANAGEMENT CONTROL 7-1 Management by exception is the practice of concentrating on areas not operating as expected and giving less attention to areas operating as expected. Variance analysis helps managers identify areas not operating as expected. The larger the variance‚ the more likely an area is not operating as expected. 2. Two sources of information about budgeted amounts are (a) past amounts and (b) detailed engineering studies
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31 years‚ NTPC has emerged as a truly national power company; with power generating facilities in all the major regions of the country. Based on 1998 data‚ carried out by Data monitor UK‚ NTPC is the 6th largest in terms of thermal power generation and the second most efficient in terms of capacity utilization amongst the thermal utilities in the world. NTPC’s core business is engineering‚ construction and operation of power generating plants and also providing consultancy to power utilities in
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Chapters 9 & 10 Standard Costing‚ Variance Analysis and Flexible Budgets This is a copyright presentation of Darlene B. Serrato and is presented exclusively for the use and benefit of students enrolled in Accounting 2303. Any other use is prohibited. All rights reserved. This presentation may not be copied‚ reproduced or transferred in or by any media without the express written permission of the author. STANDARD – is the budgeted cost for one unit of product. The beginning point
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