off with a static budget. Static budget is created before the business period. For example, if business period is six months and production estimated 500 units during six months, then 500 units will be used as the basis for the static budget calculation. A flexible budget is prepared after the business period ends. This type of budget shows the business what the static budget should have been by using actual output figures from the budget period. For example, if the static budget covered the production
Words: 1079 - Pages: 5
Westport Electric Corporation: Case Context In a meeting, James King, the supervisor of administrative staff budget section of Westport Electric Company, a large manufacturer and seller of electric and electronic products, was discussing his displeasure with the proposed increase in budget of the offices. According to him, these are not justified and are clear indications of faults in the company’s budgeting system. The company currently has six staff offices like those mentioned and they
Words: 996 - Pages: 4
other planning strategy such as marketing expenditures or salary levels failure to compromise it will affect the company planning term. So every decision must be well plan and decide to meet the objectives in order for the company to be successful. A budget also helps to keep track on the business whether the company is earning profit and making any necessary changes if needed. If a new business doesn’t make profit within a couple of year or more then it is suggested to close up the business or start
Words: 1168 - Pages: 5
actuals against budget, but it really had no functionality in the way of creating a budget. This left us with multiple spreadsheets to create an operating budget, capital budget, sales forecast, customer budgets, and so on. All the data needed to compile our entire company’s budget was in disparate spreadsheets, and then we had to try to shove it into a system which was really never designed to do budgeting. Basically, we lacked the infrastructure to complete a comprehensive budget for the company
Words: 3683 - Pages: 15
com/ACC-350-WK-8-Quiz-6-Chapter-7-All-Possible-Questions-ACC3507.htm ACC 350 WK 8 Quiz 6 Chapter 7 - All Possible Questions 1) The master budget is one type of flexible budget. 2) A flexible budget is calculated at the start of the budget period. 3) Information regarding the causes of variances is provided when the master budget is compared with actual results. 4) A variance is the difference between the actual cost for the current and previous year. 5)
Words: 457 - Pages: 2
Performance Evaluation at the Berkshire Toy Company Dean Crawford and Eleanor G. Henry ABSTRACT: This case^ provides an opportunity to study budgets, budget variances, and performance evaluation at several levels. As a purely mechanical problem, the case asks for calculations of various price, efficiency, spending, and volume variances from a set of budgets and actual results. The case is also an interpretive exercise. After the variances have been computed, the next step is to develop plausible
Words: 677 - Pages: 3
explain principles of the beyond budgeting and evaluate its usefulness in practice. In order to conduct beyond budgeting, five principles are proposed. Firstly, the beyond budgeting suggests applying rolling budgets to replace annual budgeting. Rolling budgeting breaks down annual budget by months for the first three months, and by quarters for the remaining nine months. The beyond budgeting employs wider range of non-financial measures as well as some financial measures for control. Non-financial
Words: 284 - Pages: 2
inspectors. This is where they discovered a previous inspector’s financial life-style was more than his income. After interviewing an past bookkeeper of Art Metals they had testimony that they did in fact bribe GSA inspectors and they even had a petty cash fund that they used to pay for their meals and hotels. According to Wells (2011) “bribery may be defined as the offering, giving, receiving, or soliciting anything of value to influence the decisions of government agents.” In this case they were paying
Words: 745 - Pages: 3
(by $400) expands the budget set, as shown in Figure 4-1. Since the slope is unchanged, so is the market rate of substitution. Budget Set Y 25 20 15 10 5 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Increase in income X Figure 4-1 Managerial Economics and Business Strategy, 5e Page 1 2. a. The consumer’s budget line is $250 $5 X $10Y . Rearranging terms and solving for Y results in Y 25 0.5 X . b. See in Figure 4-2. c. When the price of X increases to $10, the budget line becomes $250 $10
Words: 1771 - Pages: 8
Nebraska has a biennium budget that is set from 2013 all the way to 2015. Knowing what is in your budget and how to properly gauge what will be needed for the coming two years in each department is an important aspect to a successful budget. The person in charge of the budget for each department needs to know how to properly budget and respond to the needs of the state in the most fiscal way possible. A budget is only as good as the person who is running it. The Nebraska State budget is complex, but with
Words: 2745 - Pages: 11
