Business, 31.12.2019 00:31 SJ9320

Flexible budgets and variance analysis are very useful tools for managers, but are sometimes difficult to understand. find an online resource that you to better understand using budgets and variances to inform decision making. provide a link to the resource, and briefly explain how this resource has you and why you would recommend it to your classmates. participate in follow-up discussion by asking questions about the resources provided or commenting upon your classmates' posts. explain why the resources presented were or were not for you.

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Flexible budgets: These type of budgets are assessments, which may vary with the capacity or production for a given period.

Say for model there might be two type of budgets which bend with two or three situations of fabrication volume or production. The situations might be:

1. Budget when fabrication is at highest volume, the revenue and expenditures at the utmost output.

2. Budget when there is prime capacity, the revenue and expenditures valued at the optimal application of resources to produce optimal productivity or satisfactory output.

3. Budget when there is low capacity or demand is nearly nil, the revenues and expenditures that will be valued.

This flexible budget guides administration to appropriately plan their resources and flex with the capacity whenever it’s required subject the change in situations.

Variance Analysis: The investigation of deviance of several cost restriction with the usual set in at the start of the year results in Variance Analysis. There are several types of modifications which needs analysis and these will be diverse with the business type. The below are few common instances of modifications.

Sales capacity variances, sales combination variances, Material value variances, labor proportion variances, machine dependent price variances, overheads expenditure variances, Material procedure, Material Amount, Material replacement, labor and engine time variances etc.

These will help the administration to comprehend practically how precise the values set in for a given period of time.

Answer from: Quest

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Answer from: Quest

False according to edgenuity

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Flexible budgets and variance analysis are very useful tools for managers, but are sometimes difficu...

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