"The flexible budget is a poor benchmark. You should develop a budget and stay with it." Discuss this concept..
Solution Preview
In a stagnant world, an unchangeable budget would be a good idea, but the business world is always changing in respect to the total markets and to the piece of the market cornered by a company. A static budget presumed that management had the insight and the knowledge to accurately forecast market conditions to some point in the future. Managers would like to be exactly correct with their forecasting, but unforeseen conditions can modify the best of plans.
There is some truth in staying with a budget provided the basic elements on ...
Solution Summary
In a 359 word solution, the case for the static versus the flexible budget is discussed including examples to demonstrate the concepts.
... A flexible budget is a budget, which, by ... Performance against budgeted costs at the operating level ... pressurise line management the budget accountant should ...
... as these points directly impact budgeting (see http ... the services they receive which impacts budget as well ... proposed, this subsidy has highly flexible rules that ...
... Compute the price, quantity, and flexible-budget variances for ... Cost Budgeted Actual Variance Direct Material Cost ... due to untrained workers and poor supervision. ...
... Be as flexible as you can with breaks during the course of the day. 19. Pizza/Popcorn/Cookie Days. ... It is the budgeted cost. * BCWP (Budget cost of work ...
... helping you manage the planning and budgeting of your ...Poor planning can mean a company's inability to handle ... can also be added by Flexible manufacturing system ...
...Budgets Marketing efforts require that expenditures of funds be budgeted. ... there might be a discrepancy between the budget adopted and ... Very flexible You can ...
... The system is flexible enough to be implemented in a wide ... 3. Free clinics based in poor urban communities. ... free clinics operate on a very small budget and being ...
... creative managers to develop flexible, quick-response ... for keeping expenses within budgeted guidelines ... departmental managers, staying within budget is typically ...
... Manufacturing System (FMS) involving flexible facilities, work ... Shortage of resources/Over budgeting 4 High ... Similarly higher government debt, budget deficit ...
