The method of adjusting the budget to reflect the actual volume of sales is called
The method of adjusting the budget to reflect the actual volume of sales is called
Homework Answers
Answer: Flexible budgeting.
Explanation:
Budgets are generally prepared for a specific level of activity and such a budget is called a 'Static Budget'.
The static budget cannot be used for comparison where the actual level of activity achieved is different from the activity level of the static budget. This is because the costs and revenues are related to the activity level assumed in the static budget.
To make comparisons meaningful, the budget has to be reworked to project the revenues and costs for the actual activity level. Such an adjusted budget is called 'flexible budget' and the method of doing so is called 'flexible budgeting'.
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The method of adjusting the budget to reflect the actual volume
of sales is called
when a simple budget is recast to reflect the actual volume of patients treated , leaving...
when a simple budget is recast to reflect the actual volume of patients treated , leaving all other assuptions unchanged , the result is a flexible budget. true or false
Master Master Budget Variance Actual 60,500 Budget 57,000 Sales volume (number of cases sold) Sales revenue...
Master Master Budget Variance Actual 60,500 Budget 57,000 Sales volume (number of cases sold) Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses $ 193,700 $ 71,200 176,700 62,700 $ 122,500 $ 73,200 114,000 72,000 $ 49,300 $ 42,000 Operating income The budgeted sales price per unit is $ 3.10 Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ 1.10. Requirement 3. What is the budgeted fixed cost for the...
Which of the following is false: A. The flexible budget is prepared using the actual volume...
Which of the following is false: A. The flexible budget is prepared using the actual volume achieved during the period. B. The difference between actual results and the master budget is called the master budget variance. C. The volume variance is due to causes other than volume. D. The master budget variance can be split into two components: a volume variance and a flexible budget variance.
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Static Variance Budget Units 12,000 12,000 15,000...
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Static Variance Budget Units 12,000 12,000 15,000 S Sales Revenue $ 2,52,000 12,000 | F | $ 2,40,000 60,000 $3,00,000 Less: Variable Expenses 84,000 12,000F 96,000 24,000 F S 1,20,000 Contribution margin $1,68,000 24,000 $1,44,000 36,000 U $1,80,000 S Less: Fixed Expenses $ 1,50,000 5,000 $1,45,000 None S 1,45,000 Operating Income / (loss) $ 18,000 19,000 FS -1,000 36,000 U S 35,000 Look at the two outside columns - how was...
A static budget is one that Is based on the actual sales volume achieved during the...
A static budget is one that Is based on the actual sales volume achieved during the period. Is developed for a single level of expected output. Is one component of the operating budget. Is always used to compare with the actual results. Materiality can be measured in terms of Absolute dollars. Relative percentages. Both absolute dollars and relative percentages. Neither absolute dollars or relative percentages. The flexible budget variance is the difference between The static budget and the flexible budget....
Question 17 )The sales volume variance is the differernc between the ? A) Actual results and...
Question 17 )The sales volume variance is the differernc between the ? A) Actual results and the expected results in the flexible budget for the actual units sold B)Expected results in the flexible budget for the actual units sold and the static budget c)Static budget and actual amounts due to differences in sales price d)flexible budget and static budget due to differences in fixed costs
Question 17 )The sales volume variance is the differernc between the ? A) Actual results and...
Question 17 )The sales volume variance is the differernc between the ? A) Actual results and the expected results in the flexible budget for the actual units sold B)Expected results in the flexible budget for the actual units sold and the static budget c)Static budget and actual amounts due to differences in sales price d)flexible budget and static budget due to differences in fixed costs
Forecast Sales Volume and Sales Budget Guardian Framing Inc. prepared the following sales budget ...
Forecast Sales Volume and Sales Budget Guardian Framing Inc. prepared the following sales budget for 2016: Guardian Framing Inc. Sales Budget For the Year Ending December 31, 2016 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" × 10" Frame: East 27,600 $24 $662,400 Central 6,600 24 158,400 West 6,100 24 146,400 Total 40,300 $967,200 12" × 16" Frame: East 9,100 $25 $227,500 Central 2,200 25 55,000 West 1,500 25 37,500 Total 12,800 $320,000 Total revenue from...
Forecast Sales Volume and Sales Budget For 20Y8, Raphael Frame Company prepared the sales budget that...
Forecast Sales Volume and Sales Budget For 20Y8, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales 8" × 10" Frame 12" × 16" Frame East 26,250 10,282 Central 7,004 3,724 West 6,111 3,060 Raphael Frame Company Sales Budget For the Year Ending December 31, 20Y8 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" × 10" Frame: East...
Forecast Sales Volume and Sales Budget For 20Y8, Raphael Frame Company prepared the sales budget that...
Forecast Sales Volume and Sales Budget For 20Y8, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales 8" x 10" 12" X 16" Frame Frame East 27,664 15,960 Central 6,528 6,272 5,304 West 5,664 Raphael Frame Company Sales Budget For the Year Ending December 31, 2048 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" x 10" Frame: East...
Master Master Budget Variance Actual 60,500 Budget 57,000 Sales volume (number of cases sold) Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses $ 193,700 $ 71,200 176,700 62,700 $ 122,500 $ 73,200 114,000 72,000 $ 49,300 $ 42,000 Operating income The budgeted sales price per unit is $ 3.10 Requirement 2. What is the budgeted variable expense per unit? The budgeted variable expense per unit is $ 1.10. Requirement 3. What is the budgeted fixed cost for the...
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Static Variance Budget Units 12,000 12,000 15,000 S Sales Revenue $ 2,52,000 12,000 | F | $ 2,40,000 60,000 $3,00,000 Less: Variable Expenses 84,000 12,000F 96,000 24,000 F S 1,20,000 Contribution margin $1,68,000 24,000 $1,44,000 36,000 U $1,80,000 S Less: Fixed Expenses $ 1,50,000 5,000 $1,45,000 None S 1,45,000 Operating Income / (loss) $ 18,000 19,000 FS -1,000 36,000 U S 35,000 Look at the two outside columns - how was...
Question 17 )The sales volume variance is the differernc between the ? A) Actual results and the expected results in the flexible budget for the actual units sold B)Expected results in the flexible budget for the actual units sold and the static budget c)Static budget and actual amounts due to differences in sales price d)flexible budget and static budget due to differences in fixed costs
Question 17 )The sales volume variance is the differernc between the ? A) Actual results and the expected results in the flexible budget for the actual units sold B)Expected results in the flexible budget for the actual units sold and the static budget c)Static budget and actual amounts due to differences in sales price d)flexible budget and static budget due to differences in fixed costs
Forecast Sales Volume and Sales Budget For 20Y8, Raphael Frame Company prepared the sales budget that follows. At the end of December 20Y8, the following unit sales data were reported for the year: Unit Sales 8" x 10" 12" X 16" Frame Frame East 27,664 15,960 Central 6,528 6,272 5,304 West 5,664 Raphael Frame Company Sales Budget For the Year Ending December 31, 2048 Product and Area Unit Sales Volume Unit Selling Price Total Sales 8" x 10" Frame: East...
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