This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
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!...
View Full Document
This note was uploaded on 10/18/2009 for the course BUSI 100 taught by Professor Unknown during the Spring '07 term at UNC.
- Spring '07