Competition Bikes Inc. Storyline: Budgets & Planning
Not what you're looking for?
Prepare a summary report in which you do the following:
1. Discuss budgetary items that raise concern in the budget planning.
2. Evaluate the flexible budget and its variances.
a. Recommend corrective actions for areas of concern based on a variance analysis.
b. Discuss how the concept of management by exception could be applied to the variances.
Purchase this Solution
Solution Summary
Your discussion is 413 words plus a flexible budget created in Excel for you.
Solution Preview
Q1:
In planning the budget, you must make the best guess for units to be produced and sold, the cost of those units (variable costs), and the prices at which those units will sell. While fixed costs must be estimated for budgeting, these tend to have less variation and less surprises because they are not dependent on activity, market pricing and ingredient costs for production. So, the variable items in the budget such as direct materials, direct labor, variable overhead and variable non-product costs require the most attention. Further, even if you get the costs correct, the volume can be way off from expectations, rendering the budget less than ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.