chapter 10 class

chapter 10 class - Chapter 10 Static budget- geared for...

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Unformatted text preview: Chapter 10 Static budget- geared for only one activity level Flexible budget- geared for more than one activity level o F-favorable Costs- less than budget Revenue- more than budget o U-unfavorable costs- greater than budget revenue- less than budget Management by Exception- looks at differences between actual and planned objectives Responsibility Accounting o Cost center Only costs are measured o Revenue center Only revenues are measured o Profit center Costs and revenues are measured o Investment center Costs, revenues and investments are measured Variable costs- change, in total, with changes in activity level o TVC $ o Q o UVC $ o Q Fixed costs- do not change, in total, with changes in activity level within a relative range o TFC $ o Q o UVC $ o Q EXERCISE 10-8 In the beginning give you the budget at 8000 as static with actual of 10,000--- looks bad But actually with flexible budget at 10,000 it is right!...
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chapter 10 class - Chapter 10 Static budget- geared for...

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