Answer:A flexible budget is a crucial tool in management accounting. It helps determine what a business expects in terms of costs, income, and profits. What makes it especially valuable is that it can change based on the actual activity level. This makes it perfect for looking into the diffe...
a business might use a previous budget or recent actual results to create the upcoming budget. The downside to this is that past spending patterns can be perpetuated. In many cases, it’s best to create administrative budgets on planned actual spending, limiting extrapolation of the past to a ...
“This mortal world forever is sea of bitterness, the heaven only then has the eternal joy” is a rumor which asceticism compiles uses to poison people's minds, asks Le Cai is painstakingly the joyful true meaning.[translate] ayour name is someing weighing on my mind 您的名字someing称在我...
It is a very costly affair because it requires additional staffing to regularly update the rolling budget and analyze the actual performance vs. the budget.Conclusion A rolling budget is a continuous process of budgeting where the budget is prepared quarterly/half-yearly/early based on the last bu...
Note Tax Freedom Dayoccurred on April 23 in 2017, meaning Americans as a whole spent nearly the first four months of the year working just to pay federal, state, and local taxes. Spending FY 2017 spending was $3.982 trillion. Federal government spending has three components: discretionary, man...
The master budget serves as a motivation tool on the basis of which the employees can compare the actual performance with the budgeted performance. It helps staff get job satisfaction and a good contribution to the growth of the business. ...
Meaning you spend more time on each task than needed.How do you deal with this? Stop everything you’re doing immediately. Get clarity from the client.Stop all work on the project immediately and get clarification from the client asap. You’re going to burn through the budget if not. ...
A flexible budget variance is the difference between 1) an actual amount, and 2) the amount allowed by the flexible budget. Static Budget vs. Flexible Budget To help in understanding the flexible budget variance, let’s assume that you are the manager of a company’s shipping department. ...
Such comparison gives management better control over the variance. By comparing the fixed and flexible budget at the start, a manager can know about the variances and thus, can make a corrective decision accordingly. And, then by comparing the budget with the actual result, the manager can dete...
When looking at the meaning of budget variance, you’ll see both favourable and unfavourable variances mentioned, which we’ll discuss below. Positive vs. negative budget variance Budget variance equals the difference between the budgeted amount of expense or revenue, and the actual cost. Favourable...