ACC 220 WEEK 8 CHECKPOINT - FLEXIBLE BUDGETS

ACC 220 WEEK 8 CHECKPOINT - FLEXIBLE BUDGETS - amount...

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Week 8 CheckPoint: Flexible Budgets Due Date: Day 4 [Individual] forum Post a 200- to 300-word response to the following: o What is a flexible budget? o What are the steps to developing a flexible budget? o What information is found on a flexible budget report? o How is that information used to evaluate performance?
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What is a flexible budget? A flexible budget is schedule of plan designed according to levels of activities of an organization. A flexible budget is budget prepared in to adjust to the actual level. The flexible budget is important in budget preparation, as it is prepared according to the level of activity. Or You can write this way also, A flexible budget is a budget that adjusts or flexes for changes in the volume of activity. The flexible budget is more sophisticated and useful than a normal budget, which remains at one
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Unformatted text preview: amount regardless of the volume of activity. What are the steps to creating a flexible budget? Flexible budget is prepared as follows, 1. Identify the relevant activity range. 2. Determine the budgeted variable cost per unit after identifying the variable cost of each activity. 3. Calculating the fixed cost and budgeted amount of each cost. 4. Identifying the incremental activity level for budget with the range. What information is found on the flexible budget? Flexible budget is same as master budget but differ with the activity level. The flexible budget consist what master budget consist with the different level of activity. Manufacturing cost, Variable cost Fixed cost Sale Administrative cost Selling and Distribution cost...
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