how can a flexible budget help managers control costs, Financial Accounting

Assignment Help:

1.  How can a flexible budget help managers control costs?

A flexible budget can help managers control costs by showing favorable and unfavorable variances within the planning of the budget.

2. What is an unfavorable variance?  How does it relate to overall profit?

Unfavorable variances generally occur when actual cost exceeds standard cost.  This often alerts managers that profits will be less than expected.

 

 


Related Discussions:- how can a flexible budget help managers control costs

Decisions about managerial remuneration packages, Q. Decisions about manage...

Q. Decisions about managerial remuneration packages? In recent years there has been an improved emphasis on decisions about managerial remuneration packages being removed from

Write a brief memo, Middlehurst House is a daycare center/preschool which o...

Middlehurst House is a daycare center/preschool which operates as a partnership of George Friedman and Bill Compton. The center is in a city that has a large base of twoincome fami

their yield to maturity, Thatcher Corporation's bonds will mature in 12 ye...

Thatcher Corporation's bonds will mature in 12 years. The bonds have a face value of $1,000 and an 11.5% coupon rate, paid semi-yearly. The price of the bonds is $1,050. The bonds

Credit control, Once credit has been extended it is vital to ensure that cu...

Once credit has been extended it is vital to ensure that customers abide by agreed terms of trade. Regular checks on customer accounts for instance using an aged receivables analys

The principle of revenue, The principle that (1) requires revenue to be re...

The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3

Illustrations of dissolutions, Illustrations of Dissolutions X, Y and Z...

Illustrations of Dissolutions X, Y and Z have been trading as partners sharing profits and losses in the ratio of 2:2:1 on the 1st July 2005, they decided to dissolve the partn

Liquidation of companies-bankruptcy and liquidation, LIQUIDATION OF COMPANI...

LIQUIDATION OF COMPANIES (a) Methods of Winding Up: A company may be wound up:By the court, Voluntarily, either as a members' or a creditors' winding up; or Subject to the s

Treasury stock, 1-Dec $92,000.00 of 5% bonds are purchased with check. Int...

1-Dec $92,000.00 of 5% bonds are purchased with check. Interest is paid once a year and will mature in 5 years. The market yield for these bonds is 4%.

Leases, Company A(lessee) will rent inventory for you for 3 years rather th...

Company A(lessee) will rent inventory for you for 3 years rather than buying it for the regular price of $240,000. Normally these units, which cost us $120,000 to produce, will las

Journal entry, Clemens Cars' job cost sheet for job A40 shows that the cost...

Clemens Cars' job cost sheet for job A40 shows that the cost to add security features to a car was $10,500. The car was delivered to the customer, who paid $14,900 in cash for the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd