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What is a cashflow budget?
Budgeted cash flow statement is the estimated cash flow statement for planning purpose before the actual activity starts
Differences between fixed variable budgets?
Variable budgeting is one based on different levels of activity. It is an extremely useful tool for comparing the actual cost incurred to the cost allowable for the activity level achieved. It is dynamic in nature rather than static. By using the cost-volume formula (or flexible budget formula), a series of budgets can be developed easily for various levels of activity. A static (FIXED) budget is geared for only one level of activity and has problems in cost control. Flexible budgeting distinguishes between fixed and variable costs, thus allowing for a budget that can be automatically adjusted (via changes in variable cost totals) to the particular level of activity actually attained. Thus variances between actual costs and budgeted costs are adjusted for volume ups and downs before differences due to price and quantity factors are computed. The primary use of the flexible budget is for accurate measure of performance by comparing actual costs for a given output with the budgeted costs for the same level of output.
What is a budget which is prepared for one level of activity?
a budget which is prepared for one level of activity is:
The cash budget must be prepared before you can complete the?
budgeted balance sheet
The projection of financial position at the end of the budget period is found on the?
budgeted balance sheet
A major weakness of flexible budgets is?
they force the manager to compare actual costs at one level of activity to budgeted costs at a different level of activity.
How would you describe a budgeted cost?
Budgeted costs are generally described as the best estimate about what should be allowed for forthcoming activity.
What would the flexible budget amount be if the master budget revenue was 250000 and the actual results were 254800 and how do you get the answer?
With flexible budget, you check whether the actual activity level is within the range of activity for flexible budget. If yes, then you compare very easily. Just extrapolate your budget for the actual activity level. Only Variable costs needs to be updated (as Fixed costs remain same for a particular activity level). Finally you have the actual results and budgeted results, both on the same activity level. This provides you the ground for comparing the both.
What is budget costing?
Budgeted labour cost is an expected or standard labour cost to perform any activity. In budgeting process budgeted cost for doing every activity is calculated before so that it would be helpful in control or evaluation stage to check whether expenses are according to budget or not and if not then what's the reasons.
What is a cost budget?
Budgeted labour cost is an expected or standard labour cost to perform any activity. In budgeting process budgeted cost for doing every activity is calculated before so that it would be helpful in control or evaluation stage to check whether expenses are according to budget or not and if not then what's the reasons.
What is direct labor variance?
It means the difference between the budgeted or estimated direct labour cost at the start of work activity with the actual direct labour cost at the end of activity or fiscal year. If budgeted cost is more then the actuall then it is favourable variance otherwise it is unfavourable direct labour cost variance
What is a budget labor cost?
Budgeted labour cost is an expected or standard labour cost to perform any activity. In budgeting process budgeted cost for doing every activity is calculated before so that it would be helpful in control or evaluation stage to check whether expenses are according to budget or not and if not then what's the reasons.
What is the Purpose of the flexible budget?
compare actual and budgeted results at virtually every level of production
What does a budgeted income statement consist of?
budgeted depreciation
What is a cashflow budget?
Budgeted cash flow statement is the estimated cash flow statement for planning purpose before the actual activity starts
Differences between fixed variable budgets?
Variable budgeting is one based on different levels of activity. It is an extremely useful tool for comparing the actual cost incurred to the cost allowable for the activity level achieved. It is dynamic in nature rather than static. By using the cost-volume formula (or flexible budget formula), a series of budgets can be developed easily for various levels of activity. A static (FIXED) budget is geared for only one level of activity and has problems in cost control. Flexible budgeting distinguishes between fixed and variable costs, thus allowing for a budget that can be automatically adjusted (via changes in variable cost totals) to the particular level of activity actually attained. Thus variances between actual costs and budgeted costs are adjusted for volume ups and downs before differences due to price and quantity factors are computed. The primary use of the flexible budget is for accurate measure of performance by comparing actual costs for a given output with the budgeted costs for the same level of output.
What is the difference between a cash budget and a budgeted profit and loss account?
Cash budget estimates the cash inflows and outflows and net cash available for specific period while budgeted profit and loss is the estimated statatement for planning purpose before actual activity starts.
