Accnt P9-19 - DavidStark 919 1 , whichisnotabadthing.,

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David Stark 9-19 1) This report implicitly assumes that all costs are fixed, which is definitely not true. The unfavorable balances in expenses are simply a result of more business, which is not a bad thing. These reports are misleading, which would definitely be frustrating when trying to control expenses. A flexible budget performance report might help in this situation. 2) Tip Top Flight School Flexible budget performance report For the month ended July 31 Lessons  $150   $155  Revenue  $33,000   $1,100   $34,100   $(200) Expenses: Instructor Wages  $9,750   $325   $10,075   $(205) Aircraft Depreciation  $5,700   $190   $5,890   $-    Fuel  $2,250   $75   $2,325   $425  Maintenance  $2,330   $60   $2,390   $60  Ground facility expenses  $1,550   $10   $1,560   $(20) Administration  $3,390   $5   $3,395   $(75) Total Expense  $24,970 
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