Budgeting is an important internal activity preparing

Assignment Help Managerial Accounting

Reference no: EM13376953

Budgeting is an important internal activity. Preparing budgets involves forecasting sales and estimating costs. For this SLP, you will prepare a flexible budget for next year for the company of your choice. The budget needs to be realistic and based on corporate and economic trends.
Companies prepare budgets based on absorption and/or variable costing. Due to lack of information, we're limiting our budgeting to the absorption approach. Don't forget that the presentation of the information is important.

Set up the flexible budget showing three different growth rates. Use the financial statements and do research on the company of your choice to determine growth trends. Explain your estimates and prepare a flexible budget showing the low, the average, and the high revenues and adjust all other line items in the income statement to reflect the revised revenue assumptions.

What is the growth rate in sales for the past three years?

Are revenues and expenses growing at the same rate? What was the experience in the past few years?

What is the current growth rate in the economy?

How are the competitiors doing?

Current interest rates and tax burdens.

Discuss the implications of the information after you have completed the flexible budget.

How does the flexible budget differ from a static budget?

Budgets are used for planning and control. Discuss how you can use the information derived for these two purposes?

Comment on using this information for performance evaluations.

Reference no: EM13376953

Questions Cloud

Coffee makers incorporated cmitwo divisions of a cmi are : coffee makers incorporated cmi.two divisions of a cmi are involved in a dispute.nbsp division a purchases part 101 and

Choose an item that you would like to manufacture you do : choose an item that you would like to manufacture. you do not actually need to manufacture something but will proceed

A consulting firm produces a service that requires the use : a consulting firm produces a service that requires the use of labor and materials. each unit of service requires a

Hasselback inc produced 175000 units and prepared the : hasselback inc. produced 175000 units and prepared the following income report using absorption costing numbers in

Budgeting is an important internal activity preparing : budgeting is an important internal activity. preparing budgets involves forecasting sales and estimating costs. for

Tonya larsen is being investigated by law enforcement and : tonya larsen is being investigated by law enforcement and southern appalachian insurance company.just before closing on

Budgeting is an important internal activity preparing : budgeting is an important internal activity. preparing budgets involves forecasting sales and estimating costs. for

Q1 a you have been approached by a robin hood a client law : q1 a you have been approached by a robin hood a client law firm who employs around 80 staff and as a result of a

Question 1 refer to the article pawsey n brown a amp : question 1 refer to the article pawsey n. brown a. amp chatterjee b. 2011. lsquothe potential adoption of ifrs for u.s.

User Account

All Pages