10014_042310_18 - Change sales units from Comparing...

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Answers the question, “How well are we doing?” Control part of the decision process A. Budgets 1. Planning budget (Ch. 9) Static – only 1 level All revenues and costs are based on targeted sales units 2. Flexible budget Planning budget is adjusted to show what revenues and costs “should be” at the actual sales units Planning Budget Flexible Budget Actual Results <------------------------------------------------------|--------------------------------------------------->
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Unformatted text preview: Change sales units from Comparing estimated revenues & planned to actual expenses to actual based on actual sales units B. Variances • Activity • Revenue & spending Planning Flexible Actual <--------------------------------------------------|----------------------------------------------> Differences = activity variance Differences = revenue & spending variance-Shows what went right or- Shows how well we controlled wrong based on actual units sold revenue & expenses vs. planned units...
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