What is the basic difference between a master budget and a flexible budget? Master budget is for five year period and flexible budget is for one year period. Master budget is on financial terms and flexible budget is on quantitative terms. Master budget is for specific capacity and flexible budget is for multiple capacity.

What is the basic difference between a master budget and a flexible budget? Master budget is for five year period and flexible budget is for one year period. Master budget is on financial terms and flexible budget is on quantitative terms. Master budget is for specific capacity and flexible budget is for multiple capacity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Two standards that are established for evaluating budget performance are the cost standard and the efficiency standard. Explain the difference between the two standards and give an example of each. Why is it important to measure the actual results against both standards?
Which of the following is a correct definition of budget? Select one: O a. A statement which includes the strategic objectives of a company to be achieved in the long term. O b. A financial and/or quantitative statement, prepared and approved prior to define period of time, of the policy to be pursued during that period for the purpose of attaining a given objective O c. A financial statement which reports the achieved and not achieved objectives of the company for a period of time. O d. A financial and/or quantitative statement, prepared and approved after a define period of time, of the policy pursued during that period for the purpose of evaluating the objectives achieved.
I need the answer of the below question in 30 Minutes. What are the various kind of budgeting and critically compare the fixed and variable budgeting and state the advantages and disadvantages of both
In the budget preparation cycle, the first budget to be prepared is usually the: a) Production budgetb) Direct materials budget c) Direct labour budgetd) None of the above
Is the budgeted price used for the static budget or the flexible budget?
A cash budget a. is an optional feature of a master budget. b. requires input from all parts of the organization. c. takes the place of another budget. d. is prepared only at year end.
The project budgeting process involves two steps. The first step is to determine the total budgeted cost (TBC), which is the aggregate amount of the estimated costs of all the specific activities to perform and complete a work package or the project. Review the below Budgeted Cost table by period per activity and calculate the cumulative total cost for the following days: a) b) c) d) e) Day: 2 Day: 4 Day: 7 Day: 9 Day: 12 The Independent Institute of Education (Pty) Ltd 2022 21; 22; 23 1 Activity 1 2 Activity 2 Activity 3 Activity 4 Activity 5 22 4 5 32 7~ Days 4 5 6 2 2 2 4 3 3 5 5 5 5 5 Amounts are in thousands of Rands. 7 2 82 9 10 4 6 10 10 Page 4 of 6 11 12 3 2 2022
Use the given data shown in the graph. A. What is the budgeted fixed cost per period? B. What is the budgeted variance cost per unit? C. What is the value of F (that is, the flexible budget for an activity of 8,000 units)? D. What is the flexible budget cost amount if the actual activity had been 16,000 units?
Which of the following statements is true? 1. Budgets are used for the distinct purposes of planning and profit. II. Control Involves developing goals and preparing various budgets to achieve those goals. III. A continuous or perpetual budget is a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed. Multiple Choice None of the statements are true. Only statement Ill is true. ○ Only statement I is true. All of the statements are true. B
How do managers use budgets to control business activities?a) Match the concept (by number) to the correct terminology. 1. Static Budget2. Budget Performance Report3. Variance4. Static Budget Variance5. Flexible Budget6. Flexible Budget Variance7. Sales Volume Variance______ A budget prepared for various levels of sales volume.______ The difference between actual results and the expected results in the flexible budget for the actual units sold. ______ The difference between the expected results in the flexible budget for the actual units soldand the static budget. _____ The difference between actual results and the expected results in the static budget. _____ A report that summarizes the actual results, budgeted amounts, and the differences. _____ A budget prepared for only one level of sales volume. _____ The difference between an actual amount and the budgeted amount; labeled as favorable if it increases operating income and unfavorable if it decreases operating income. In…
The traditional line-item budget results in which of the following benefits? Appropriations are flexible to allow for the achievement of desired outcomes. Accountability and responsibility are easily assigned. The long timeframe allows for decision-making and planning. Costs of defined activities are identified.