Bobs Consult, uses flexible budgeting for cost review purposes. The company’s master/static budget for the entire year includes $324,000 for fixed supervisory salaries for 180,000 client service hours. Supervisor salaries are expected to be incurred uniformly throughout the year (i.e., per the budget, each month is expected to have identical Supervisor salary expense). During the month of September, 15,750 client service hours were provided and supervisory salaries incurred were $28,000. A performance report for September would reflect a flexible budget variance related to supervisor salaries of: Choose one below: $350 Favorable $1,000 Favorable $0 $350 Unfavorable $1,000 Unfavorable
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Bobs Consult, uses flexible budgeting for cost review purposes. The company’s
A performance report for September would reflect a flexible
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