Flexible Budget: A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business. Flexible Budget Performance Report: A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest. To prepare: Flexible budget performance report.

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Answer 1

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 21, Problem 1QS

To determine

Flexible Budget:

A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business.

Flexible Budget Performance Report:

A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest.

To prepare: Flexible budget performance report.

Expert Solution & Answer

Explanation of Solution

B Company
Budgeted Performance Report
For the month ended May 31, 20XX
Particulars	Flexible Budget ($)	Actual Budget ($)	Net Variance ($)
Sales(105,000 units)	1,300,000	1,275,000	25000
Variable costs	750,000	712,500	37500
Contribution	550000	562,500	12500
Fixed costs	300,000	300,000	-
Net Income	250,000	262500	12500

Hence, the net income of the firm is increased by 12500 from the projected budget.

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Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 21, Problem 1QS

To determine

Flexible Budget:

A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business.

Flexible Budget Performance Report:

A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest.

To prepare: Flexible budget performance report.

Expert Solution & Answer

Explanation of Solution

B Company
Budgeted Performance Report
For the month ended May 31, 20XX
Particulars	Flexible Budget ($)	Actual Budget ($)	Net Variance ($)
Sales(105,000 units)	1,300,000	1,275,000	25000
Variable costs	750,000	712,500	37500
Contribution	550000	562,500	12500
Fixed costs	300,000	300,000	-
Net Income	250,000	262500	12500

Hence, the net income of the firm is increased by 12500 from the projected budget.

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Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 21, Problem 1QS

To determine

Flexible Budget:

A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business.

Flexible Budget Performance Report:

A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest.

To prepare: Flexible budget performance report.

Expert Solution & Answer

Explanation of Solution

B Company
Budgeted Performance Report
For the month ended May 31, 20XX
Particulars	Flexible Budget ($)	Actual Budget ($)	Net Variance ($)
Sales(105,000 units)	1,300,000	1,275,000	25000
Variable costs	750,000	712,500	37500
Contribution	550000	562,500	12500
Fixed costs	300,000	300,000	-
Net Income	250,000	262500	12500

Hence, the net income of the firm is increased by 12500 from the projected budget.

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Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 21, Problem 1QS

To determine

Flexible Budget:

A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business.

Flexible Budget Performance Report:

A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest.

To prepare: Flexible budget performance report.

Expert Solution & Answer

Explanation of Solution

B Company
Budgeted Performance Report
For the month ended May 31, 20XX
Particulars	Flexible Budget ($)	Actual Budget ($)	Net Variance ($)
Sales(105,000 units)	1,300,000	1,275,000	25000
Variable costs	750,000	712,500	37500
Contribution	550000	562,500	12500
Fixed costs	300,000	300,000	-
Net Income	250,000	262500	12500

Hence, the net income of the firm is increased by 12500 from the projected budget.

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Answer 5

Chapter 21, Problem 1QS

To determine

Flexible Budget:

A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business.

Flexible Budget Performance Report:

A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest.

To prepare: Flexible budget performance report.

Expert Solution & Answer

Explanation of Solution

B Company
Budgeted Performance Report
For the month ended May 31, 20XX
Particulars	Flexible Budget ($)	Actual Budget ($)	Net Variance ($)
Sales(105,000 units)	1,300,000	1,275,000	25000
Variable costs	750,000	712,500	37500
Contribution	550000	562,500	12500
Fixed costs	300,000	300,000	-
Net Income	250,000	262500	12500

Hence, the net income of the firm is increased by 12500 from the projected budget.

Answer 6

Chapter 21, Problem 1QS

To determine

Flexible Budget:

A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business.

Flexible Budget Performance Report:

A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest.

To prepare: Flexible budget performance report.

Expert Solution & Answer

Explanation of Solution

B Company
Budgeted Performance Report
For the month ended May 31, 20XX
Particulars	Flexible Budget ($)	Actual Budget ($)	Net Variance ($)
Sales(105,000 units)	1,300,000	1,275,000	25000
Variable costs	750,000	712,500	37500
Contribution	550000	562,500	12500
Fixed costs	300,000	300,000	-
Net Income	250,000	262500	12500

Hence, the net income of the firm is increased by 12500 from the projected budget.

Answer 7

Chapter 21, Problem 1QS

To determine

Flexible Budget:

A flexible budget is the budget which is prone to changes as per the requirement of allocation of funds according to the volume of transactions over a period of time. The variable cost is an integral regulator of a flexible budget, because the fixed costs are always stagnant irrespective of the operations undergone by the business. Therefore, the variable costs undergo change with the dynamics of the operations of business.

Flexible Budget Performance Report:

A flexible budget performance report is the analysis of deviations between the budget forecasted and the outcome of such budget. This report helps the end users to locate the remarkable deviations from the ones which were budgeted so as to fix them at the earliest.

To prepare: Flexible budget performance report.

Answer 8

Expert Solution & Answer

Explanation of Solution

B Company
Budgeted Performance Report
For the month ended May 31, 20XX
Particulars	Flexible Budget ($)	Actual Budget ($)	Net Variance ($)
Sales(105,000 units)	1,300,000	1,275,000	25000
Variable costs	750,000	712,500	37500
Contribution	550000	562,500	12500
Fixed costs	300,000	300,000	-
Net Income	250,000	262500	12500