Unformatted text preview: vary with activity. The other costs are fixed. The budget reflected above was based upon an assumed 80% occupancy rate. The university's football team was on a winning streak and numerous alumni were returning to campus in October, resulting in a 96% occupancy rate during the month. Prepare a "flexible budget" based upon a 96% occupancy rate, and identify whether the Inn is being efficienctly or inefficiently run. Comment on specific costs, and note why a flexible budget can improve performance evaluations....
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- Spring '11
- Accounting, Cost overrun, University Inn, monthly expense analysis