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Unformatted text preview: cost and determining the budgeted variable cost per unit of activity, identifying fixed costs and determining the budget amount for the cost, and preparing the budget for the amount of activity within the time period range. The information found on the flexible budget report is the variable costs which include: labor, materials, and overhead; the fixed costs which include: manufacturing, advertising and marketing, and any other fixed costs; the contribution margin and operating income. In conclusion, the flexible budget is a key indicator to how well you are keeping to the budgeted sales activities, labor, expenses, etc. This tells whether you are able to control your budget or whether you let the budget control you. If the budget is exceeded in a positive way then you are doing well it means more profit to the bottom line, if you are doing bad it means a loss or profit and margin to the company and to you....
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This note was uploaded on 06/13/2010 for the course ACCOUNTING 250 taught by Professor Connie during the Spring '10 term at Phoenix School of Law.
- Spring '10