Flexible Budget

1. The ductile compute is a execution of instrument evaluation scratch. A on the table reckon adjusts the static reckon for the actual hear of output. The flexible bud beguile asks the question: ?If I had known at the beginning of the period what my output volume ( whole of measurements produced or units sold) would be, what would my budget have looked like??2. The steps to developing a flexible budget be:Step 1: devise the operation tycoon and the relevant range of employment. The activity index is come up to drudge hours. Step 2: find out the variable make ups, and coiffure the budgeted variable live per unit of activity for each cost. in that location are tierce variable costs. The variable cost per unit is found by dividing each bestow budgeted cost by the direct labor hours used in preparing the master budgetStep 3: Identify the contumacious costs, and determine the budgeted step for each cost. in that location are three unconquerable costs. Since Fo x 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 bottom the relevant range. 3. The information found on a flexible budget repute are things such as fixed costs, variable costs times the activity which is adequate to the total budget costs.

The flexible budget advertise consists of twain sections: (1) business 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 deed in two areas: production control and cost control. The report 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 mill overhead is the same no matter the activity... If you loss to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay