Week 5 Discussion Budgets 3 - a more accurate overall...

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I think we have covered most of the objectives very well. Throughout my research during our discussions I have learned that the importance of a flexible budget is that is contains information that can be applied and built on for future reference in various facets of the organization. The mathematics are fairly simplistic when completing a flexible budget, the hard part is getting management to buy into its implications. Flexible budgets can be utilized even when different levels of activity are being considered. They will ultimately help to compare actual costs with standards costs to control costs by having
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Unformatted text preview: a more accurate overall picture of what is going on at the different activity levels. This allows management to take action on the results as long as they are willing to analyze the variances and understand where they are coming from. Everything points to the use of flexible budgets as a sound business decision if a company wants to understand current trends and use them to their benefit to have continued growth. Sources: http://findarticles.com/p/articles/mi_m3257/is_n1_v43/ai_6965732/ http://www.helium.com/items/848637-defining-flexible-budgeting...
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