Fixed budgeting, Cost Accounting

Fixed Budgeting

The master budget discussed before is a fixed budget.

A fixed budget is defined via as:

1. Just one level of activity

2. Not adjusted to reflect real activity level when change happens

A fixed budget has the given limitations as:

1. It gives little assistance at the planning stage. It does not provide implication of different alternative strategies that management may wish to consider.

2. It fails to give relevant and reliable base against that to measure real performance where real activity differs from the budget.

3. Little motivation to management to employ the budgeting control system like a control aid.

Posted Date: 2/7/2013 4:45:42 AM | Location : United States

Related Discussions:- Fixed budgeting, Assignment Help, Ask Question on Fixed budgeting, Get Answer, Expert's Help, Fixed budgeting Discussions

Write discussion on Fixed budgeting
Your posts are moderated
Related Questions
Image Is Everything, Inc. (IIE) is located in an emerging market. It specializes in lithographic duplication, catering to demands from the nouveau riche for reproductions of paint

On January 1, 2012, a machine was purchased for $197,100. The machine has an estimated salvage value of $13,140 and an estimated useful life of 5 years. The machine can operate for

Purposes of standard cost accounting connection - suppose you were a management consultant and the client asked you the advantages and disadvantages of using standard costs and cos

Automotive Products  (AP)  designs, manufactures,  and  sells  automotive  parts.  It  has  3 main operating departments: design, engineering, and production.  1.Design  ñ  the

Q. What are the advantages and disadvantages of free float? Advantages: It is one of the most suitable ER regimes for transitional countries that experience external shocks l

31. Special Orders Maria’s Food Service provides meals that nonprofi t organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April

how to determine reasonable, allowable, allocable, variable, fixed cost of new company

Controllable and Non Controllable Costs Controllable costs can be influenced on the level of authority at that they are being analyzed when non-controllable costs cannot.

What is the major value of the weighted cost of capital calculation for the firm?

Functional Classification of Costs Beneath this classification, costs are classified according to the function they execute in an organization.  Costs can functionally be clas