﻿ flexible budget and variance analysis ppt

# flexible budget and variance analysis ppt

Flexible budgets a. The characteristics of a flexible budget a.i. Planning budget a.i.1. Prepared before the period begins and is valid for only the planned level of activity a.ii.TAGS Managerial Accounting, Variance, Net Income, variance analysis. 8 Flexible Budgets, Overhead Cost Variances, and Management Control. Overhead Cost Variances Force Macys to Shop for Changes in Strategy.Flexible Budget and Variance Analysis for Direct Labor Costs. A flexible budget is a budget that shows differing levels of revenue and expense, based on the amount of sales activity that actually occurs. Typically, actual revenues or actual units sold are inserted into a flexible budget model, and budgeted expense levels are automatically generated by the mode. Question Variance Analysis The budgeting process may be approached differently in various firms.varianceanalysisandflexiblebudgetingsolu.docx (15.21 KB). Budgeting. Variance Analysis.The flexible budget is also known by other names, such as variable budget, dynamic budget, sliding scale budget, step budget, expenses formula budget and expenses control budget. Yousif Spares Trading engaged in manufacturing and selling a unique spare part Bearing 14. The business prepares the budget for the year ended 31st December 2010.

The budget was for 2,850 units of Bearing 14 to be produced and sold The variance on direct materials is, therefore, flexed budget 6,000, actual 4,250. Favourable (positive) variance of 1,750. If you have additional information it is possible to split this variance further. 3. Calculate flexible-budget variances and sales- volume variances 4. Explain why standard costs are often used in variance analysis 5.