Question.4705 - EC DB #3 (Extra Credit/Budget/Performance)(10 points Extra Credit Due Saturday, 5/3/2025 at 11:00 pm)First 5 points for your own answer to this forum topic. The other 5 points is for your reply to at least one student's posting. You will not see other students' answers until you post yours. Once you post your answer, then you will see others' answers which you can reply to.Describe an example of how an unfavorable variance between actual and budget amounts in a fixed static (master) budget can become a favorable variance in a flexible budget report.Also, since flexible budget is more accurate in measuring performance, can company just develop flexible budget without the static budget? Why or why not?
Answer Below:
Imagine a company budgets $500,000 in sales revenue in its static (master) budget, based on a forecast of selling 10,000 units at $50 each. However, t...
Imagine x company xxxxxxx in xxxxx revenue xx its xxxxxx master xxxxxx based xx a xxxxxxxx of xxxxxxx units xx each xxxxxxx the xxxxxx sales xxxx out xx be xxxxx at xxxx totaling xx actual xxxxxxx This xxxxx appear xx an xxxxxxxxxxx variance xx actual xx expected xxxx units xx if xxxxxxxxx it xx the xxxxxx budget xxxxxxx the xxxxxxx selling xxxxx dropped xxxxxxx in x flexible xxxxxx which xxxxxxx the xxxxxxxx figures xxxxx on xxx actual xxxxx of xxxxxxxx units xxx budgeted xxxxxxx would xx Now xxxxxxxxx the xxxxxx to xxx flexible xxxxxx of xxxxx only x unfavorable xxxxxxxx and xx the xxxxxx variable xxxxx were xxxxx than xxxxxxxx the xxxxxxx net xxxxxxxxx income xxxxxxxx could xxxx be xxxxxxxxx This xxxxx happens xxxxxxx the xxxxxx budget xxxxxxx account xxx volume xxxxxxx while xxx flexible xxxxxx does xxxxxxxxx a xxxx realistic xxxxxxxxxxx comparison xxxxxx a xxxxxxx Only xxx a xxxxxxxx Budget xxxxx the xxxxxxxx budget xx better xxx performance xxxxxxxxxx companies xxxxxx not xxxxxxxxx the xxxxxx budget xxxxxxx Planning xxx Benchmarking xxx static xxxxxx sets xxxxxxxxxxxx and xxxxxxx for xxx year xxxxxx for xxxxxxxxx planning xxx resource xxxxxxxxxx Accountability xx provides x baseline xx compare xxxxxx results xxxxxxx what xxx initially xxxxxxx regardless xx volume xxxxxxx Decision xxxxxx Executives xxx boards xxxxx use xxx static xxxxxx to xxxxxxx spending xxx incentives xxx define xxxxxxxxx goals xx short xxxx budgets xxxxx different xxxxxxxx Static xxxxxx is xxx planning xxx control xxxxxxxx budget xx for xxxxxxxxxx operational xxxxxxxxxxxPaying someone to do your management assignment has become a practical solution for students managing tight deadlines, academic pressure, and personal responsibilities. Today’s education system demands accuracy, originality, and timely submission, which can be difficult when multiple assignments overlap. Professional academic assistance helps students meet these expectations without unnecessary stress.
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