Distinguish between static and flexible budgets.

Question

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Answer 1

Textbook Question

Chapter 11, Problem 1RQ

Distinguish between static and flexible budgets.

Expert Solution & Answer

To determine

State the difference between the static budgets and flexible budgets.

Explanation of Solution

Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output. In other words, it is a budget that adjusts according to the changes in the volume of the activity. The main purpose of preparing flexible budget is to determine the differences among standard and actual result.

Static budget: Static budget is a master budget that is prepared for only one level of sales volume. The budgeted amount of operating income and expense does not change once the static budget is developed. A static budget performance reports static budget variances.

The difference between the static budgets and flexible budgets is as follows:

A static budget is based on only one level of activity. A flexible budget allows for several different levels of activity.

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Please help me solve this general accounting problem with the correct financial process.

MCQ

Nirvana Technologies has $85,000 in assets. They also have $32,000 in liabilities and $8,500 in expenses, and they paid out $10,000 in dividends this year. The extended accounting equation is assets = liabilities + (revenue - (expenses + dividends)). What would their revenue need to be for their accounts to be in balance?

Answer 2

Textbook Question

Chapter 11, Problem 1RQ

Distinguish between static and flexible budgets.

Expert Solution & Answer

To determine

State the difference between the static budgets and flexible budgets.

Explanation of Solution

Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output. In other words, it is a budget that adjusts according to the changes in the volume of the activity. The main purpose of preparing flexible budget is to determine the differences among standard and actual result.

Static budget: Static budget is a master budget that is prepared for only one level of sales volume. The budgeted amount of operating income and expense does not change once the static budget is developed. A static budget performance reports static budget variances.

The difference between the static budgets and flexible budgets is as follows:

A static budget is based on only one level of activity. A flexible budget allows for several different levels of activity.

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Answer 3

Textbook Question

Chapter 11, Problem 1RQ

Distinguish between static and flexible budgets.

Expert Solution & Answer

To determine

State the difference between the static budgets and flexible budgets.

Explanation of Solution

Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output. In other words, it is a budget that adjusts according to the changes in the volume of the activity. The main purpose of preparing flexible budget is to determine the differences among standard and actual result.

Static budget: Static budget is a master budget that is prepared for only one level of sales volume. The budgeted amount of operating income and expense does not change once the static budget is developed. A static budget performance reports static budget variances.

The difference between the static budgets and flexible budgets is as follows:

A static budget is based on only one level of activity. A flexible budget allows for several different levels of activity.

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Answer 4

Textbook Question

Chapter 11, Problem 1RQ

Distinguish between static and flexible budgets.

Expert Solution & Answer

To determine

State the difference between the static budgets and flexible budgets.

Explanation of Solution

Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output. In other words, it is a budget that adjusts according to the changes in the volume of the activity. The main purpose of preparing flexible budget is to determine the differences among standard and actual result.

Static budget: Static budget is a master budget that is prepared for only one level of sales volume. The budgeted amount of operating income and expense does not change once the static budget is developed. A static budget performance reports static budget variances.

The difference between the static budgets and flexible budgets is as follows:

A static budget is based on only one level of activity. A flexible budget allows for several different levels of activity.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

State the difference between the static budgets and flexible budgets.

Explanation of Solution

Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output. In other words, it is a budget that adjusts according to the changes in the volume of the activity. The main purpose of preparing flexible budget is to determine the differences among standard and actual result.

Static budget: Static budget is a master budget that is prepared for only one level of sales volume. The budgeted amount of operating income and expense does not change once the static budget is developed. A static budget performance reports static budget variances.

The difference between the static budgets and flexible budgets is as follows:

A static budget is based on only one level of activity. A flexible budget allows for several different levels of activity.

Answer 8

Expert Solution & Answer

To determine

State the difference between the static budgets and flexible budgets.

Explanation of Solution

Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output. In other words, it is a budget that adjusts according to the changes in the volume of the activity. The main purpose of preparing flexible budget is to determine the differences among standard and actual result.

Static budget: Static budget is a master budget that is prepared for only one level of sales volume. The budgeted amount of operating income and expense does not change once the static budget is developed. A static budget performance reports static budget variances.

The difference between the static budgets and flexible budgets is as follows:

A static budget is based on only one level of activity. A flexible budget allows for several different levels of activity.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

State the difference between the static budgets and flexible budgets.

Answer 12

Explanation of Solution

Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output. In other words, it is a budget that adjusts according to the changes in the volume of the activity. The main purpose of preparing flexible budget is to determine the differences among standard and actual result.

Static budget: Static budget is a master budget that is prepared for only one level of sales volume. The budgeted amount of operating income and expense does not change once the static budget is developed. A static budget performance reports static budget variances.

The difference between the static budgets and flexible budgets is as follows:

A static budget is based on only one level of activity. A flexible budget allows for several different levels of activity.