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ACC 220 Week 8 CheckPoint Flexible Budgets

ACC 220 Week 8 CheckPoint Flexible Budgets - what things...

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ACC 220 Week 8 CheckPoint Flexible Budgets A flexible budget is a budget that moves and adjusts with the amount of activity within a  business. This budget is better than one that would stay the same regardless of change  because it is more accurate in depicting business numbers. Flexible budgets also give a  company freedom to be flexible with their production numbers without resulting in hurting other  aspects of the company. On a flexible budget there should be a depiction of the actual budget  versus the beginning budget. Categories budgeted are thing that can possibly change during  production. Things like labor, materials and utilities are all variable of a budget that can either  expand or decrease. Depending on the company and how the money is budgeted determines 
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Unformatted text preview: what things should be listed on the budget. When creating a flexible budget numbers from previous months should be taken into consideration simply because it gives the company an idea, at least, of what they are capable of if not better. Over-budgeting and under-budgeting should only happen in the beginning of the life of a company. Balance records should be kept accurate to avoid these types of errors; if they do occur, hopefully they will not be off by large dollar amounts. With flexible records kept accurate and up to date they can be used as basis points for the creation of the flexible budget for the next period....
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