Professor Squirrel Flexible Budgets Introduction The flexible budget is useful for cash forecasting because it is based upon the estimation of a variety of activity volumes. The usefulness of a flexible budget is founded in the ability to compare potential level of performance to the expected level. It is also a better representation of the actual fluctuations that occur in the volume of activity as it is influenced by fixed and variable costs. In comparison, a static budget is based upon the
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BM 701 Preview of Chapter 10 How budgets are used by management to control operations. Focuses on two management control : I. aspect of budgetary control; and II. responsibility accounting Preview of Chapter 10 Budgetary Control and Responsibility Accounting Budgetary Control Budget report Control activities Reporting System Static Budget Reports Examples Uses and limitation Flexible Budgets Why flexible budgets Development Case study Reports Responsibility
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CASE STUDY Denison Specialty Hospital Denison Specialty Hospital is planning its master budget for the coming year. The budget will include operating, capital, cash, and flexible budgets. The hospital is noted for its three fine programs: Oncology (cancer), Cardia (heart), and Rhinoplasty (nose jobs). Part I. Section A The managers at Denison have been busy working. They have reviewed past records, considered changes in competition, the general economy, and overall medical trends. Using
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JET2 Task 2 A1. Concerns There are many concerns with the budget planning for Competition Bike. From year 2006 to 2008, Competition Bike experienced a 13.3% increase in sales. In year 9, sales are projected to increase to 3510 units to give sales revenue of $5,247,450. This is a bold increase after 3400 units sold in 2008 and 4000 sold in 2007. I do not think the sales will be as robust with the economy rebounding. Sales projections should be 3425 with net sales at $5,120,375. Since the
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Report II S.J. Abke Western Governor’s University Table of Contents Preface: Master Budget………………………………………………………………………….3 1. Summary Report for Budgets…………………........................................................................4 2. Concerns of Budget Planning and Profomas…….....................................................................4 3. Evaluation of Flexible Budget and Variances………………...................................................5 4. Identify, Described
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Course Name: MSC. FINANCE AND INVESTMENT (MFI) Module Name: Accounting for Decision Making and Control Module Code: AF 09101 INTRUDUCTION OF THE BUDGETTING Budget is a combinations of company activities within which a company coordinate to a common plan for future period. The budget is not something that originates 'from nothing' each 'year - it is developed within the context of ongoing business and is ruled by previous decisions that have been taken within the long-term
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Report of Washington Cedar Furniture Ltd for quarter ending 30 June 2017 According to the Budget report of Washington Cedar Furniture Ltd for quarter ending 30 June 2017, the flexible budget variance shows the difference between actual and budget figures. For this quarter, from the operating profit line, it has clearly indicated that the operating profit flexible budget variance is 99405.56 unfavourable which means the actual profit is lower than expected. The operating profit is the result of contribution
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Budgets Rosa M. Oyola-Jerez American Military University FINC 405 B004 Professor: Greg Harms April, 30, 2011 Budgets Here would be explain what is a master budget? What factors cause budget variances? It would also be explain the difference between a favorable and unfavorable variance, and an example of it would be provided. It would also be explain the difference between static and a flexible budget with an example of it. A master budget in my words is a recompilation of all different budgets
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A budget is a comprehensive plan given in a quantitative term that directs where resources will be acquired and spent in a given period. It is a financial document which operates on income and expense basis. This document depends on the balancing of the monthly or yearly income and expenses. In this case, plan is used as the controller of what is going to happen while budget assess the performance of the required project. The meaning of setting a budget is to provide direction, improves efficiency
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|$7,500 | Part (a) Prepare the pizzeria’s planning budget for February assuming that 1,500 pizzas are served. Part (b) Assume that 1,600 pizzas were served in February. Prepare a flexible budget for this level of activity. Part (c) Actual results for February appear below. Prepare a flexible budget performance report for the pizzeria for February. |Revenue |$18,800
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