In a business organization it is always good to start the year with a budget. Though many companies use static budget it is very much advisable to have a flexible budget. A flexible budget is a budget which provides for changes in the volume of operations whereas a static budget is rigid and remains same for any level of operations. Flexible budget is more advanced form of budget. After each period the actual results must be compared with the budget to know whether the business has underperformed or over performed than the expected outcome. This comparison is presented in a report form which is called as flexible budget performance report. This is one of the most important management tools for decision making. To Prepare: Flexible budget performance report

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 23, Problem 1QS

To determine

Concept Introduction:

In a business organization it is always good to start the year with a budget. Though many companies use static budget it is very much advisable to have a flexible budget. A flexible budget is a budget which provides for changes in the volume of operations whereas a static budget is rigid and remains same for any level of operations. Flexible budget is more advanced form of budget.

After each period the actual results must be compared with the budget to know whether the business has underperformed or over performed than the expected outcome. This comparison is presented in a report form which is called as flexible budget performance report. This is one of the most important management tools for decision making.

To Prepare:

Flexible budget performance report

Expert Solution & Answer

Explanation of Solution

Flexible Budget Performance Report of Beech Company for the month of May

Particulars	Flexible Budget in $	ActualIn $	VariancesIn $
Sales	105000 units	105000 units

Revenue	1,300,000	1,275,000	25,000 U
Variable Cost	750,000	712,500	37,500 F

Contribution	550,000	562,500	12,500 F
Fixed Cost	300,000	300,000	-

Profit	250,000	2,62,500	12,500 F

Want to see more full solutions like this?

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

Students have asked these similar questions

I am searching for the correct answer to this general accounting problem with proper accounting rules.

Please provide correct solution and accounting question

How much is the cost per hoodie for this job?

Answer 2

Question

Chapter 23, Problem 1QS

To determine

Concept Introduction:

In a business organization it is always good to start the year with a budget. Though many companies use static budget it is very much advisable to have a flexible budget. A flexible budget is a budget which provides for changes in the volume of operations whereas a static budget is rigid and remains same for any level of operations. Flexible budget is more advanced form of budget.

After each period the actual results must be compared with the budget to know whether the business has underperformed or over performed than the expected outcome. This comparison is presented in a report form which is called as flexible budget performance report. This is one of the most important management tools for decision making.

To Prepare:

Flexible budget performance report

Expert Solution & Answer

Explanation of Solution

Flexible Budget Performance Report of Beech Company for the month of May

Particulars	Flexible Budget in $	ActualIn $	VariancesIn $
Sales	105000 units	105000 units

Revenue	1,300,000	1,275,000	25,000 U
Variable Cost	750,000	712,500	37,500 F

Contribution	550,000	562,500	12,500 F
Fixed Cost	300,000	300,000	-

Profit	250,000	2,62,500	12,500 F

Want to see more full solutions like this?

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

Answer 3

Question

Chapter 23, Problem 1QS

To determine

Concept Introduction:

In a business organization it is always good to start the year with a budget. Though many companies use static budget it is very much advisable to have a flexible budget. A flexible budget is a budget which provides for changes in the volume of operations whereas a static budget is rigid and remains same for any level of operations. Flexible budget is more advanced form of budget.

After each period the actual results must be compared with the budget to know whether the business has underperformed or over performed than the expected outcome. This comparison is presented in a report form which is called as flexible budget performance report. This is one of the most important management tools for decision making.

To Prepare:

Flexible budget performance report

Expert Solution & Answer

Explanation of Solution

Flexible Budget Performance Report of Beech Company for the month of May

Particulars	Flexible Budget in $	ActualIn $	VariancesIn $
Sales	105000 units	105000 units

Revenue	1,300,000	1,275,000	25,000 U
Variable Cost	750,000	712,500	37,500 F

Contribution	550,000	562,500	12,500 F
Fixed Cost	300,000	300,000	-

Profit	250,000	2,62,500	12,500 F

Want to see more full solutions like this?

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

Answer 4

Question

Chapter 23, Problem 1QS

To determine

Concept Introduction:

In a business organization it is always good to start the year with a budget. Though many companies use static budget it is very much advisable to have a flexible budget. A flexible budget is a budget which provides for changes in the volume of operations whereas a static budget is rigid and remains same for any level of operations. Flexible budget is more advanced form of budget.

After each period the actual results must be compared with the budget to know whether the business has underperformed or over performed than the expected outcome. This comparison is presented in a report form which is called as flexible budget performance report. This is one of the most important management tools for decision making.

To Prepare:

Flexible budget performance report

Expert Solution & Answer

Explanation of Solution

Flexible Budget Performance Report of Beech Company for the month of May

Particulars	Flexible Budget in $	ActualIn $	VariancesIn $
Sales	105000 units	105000 units

Revenue	1,300,000	1,275,000	25,000 U
Variable Cost	750,000	712,500	37,500 F

Contribution	550,000	562,500	12,500 F
Fixed Cost	300,000	300,000	-

Profit	250,000	2,62,500	12,500 F

Want to see more full solutions like this?

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

Answer 5

Chapter 23, Problem 1QS

To determine

Concept Introduction:

In a business organization it is always good to start the year with a budget. Though many companies use static budget it is very much advisable to have a flexible budget. A flexible budget is a budget which provides for changes in the volume of operations whereas a static budget is rigid and remains same for any level of operations. Flexible budget is more advanced form of budget.

After each period the actual results must be compared with the budget to know whether the business has underperformed or over performed than the expected outcome. This comparison is presented in a report form which is called as flexible budget performance report. This is one of the most important management tools for decision making.

To Prepare:

Flexible budget performance report

Expert Solution & Answer

Explanation of Solution

Flexible Budget Performance Report of Beech Company for the month of May

Particulars	Flexible Budget in $	ActualIn $	VariancesIn $
Sales	105000 units	105000 units

Revenue	1,300,000	1,275,000	25,000 U
Variable Cost	750,000	712,500	37,500 F

Contribution	550,000	562,500	12,500 F
Fixed Cost	300,000	300,000	-

Profit	250,000	2,62,500	12,500 F

Answer 6

Chapter 23, Problem 1QS

To determine

Concept Introduction:

In a business organization it is always good to start the year with a budget. Though many companies use static budget it is very much advisable to have a flexible budget. A flexible budget is a budget which provides for changes in the volume of operations whereas a static budget is rigid and remains same for any level of operations. Flexible budget is more advanced form of budget.

After each period the actual results must be compared with the budget to know whether the business has underperformed or over performed than the expected outcome. This comparison is presented in a report form which is called as flexible budget performance report. This is one of the most important management tools for decision making.

To Prepare:

Flexible budget performance report

Expert Solution & Answer

Explanation of Solution

Flexible Budget Performance Report of Beech Company for the month of May

Particulars	Flexible Budget in $	ActualIn $	VariancesIn $
Sales	105000 units	105000 units

Revenue	1,300,000	1,275,000	25,000 U
Variable Cost	750,000	712,500	37,500 F

Contribution	550,000	562,500	12,500 F
Fixed Cost	300,000	300,000	-

Profit	250,000	2,62,500	12,500 F

Answer 7

Chapter 23, Problem 1QS

To determine

Concept Introduction:

In a business organization it is always good to start the year with a budget. Though many companies use static budget it is very much advisable to have a flexible budget. A flexible budget is a budget which provides for changes in the volume of operations whereas a static budget is rigid and remains same for any level of operations. Flexible budget is more advanced form of budget.

After each period the actual results must be compared with the budget to know whether the business has underperformed or over performed than the expected outcome. This comparison is presented in a report form which is called as flexible budget performance report. This is one of the most important management tools for decision making.

To Prepare:

Flexible budget performance report

Answer 8

Expert Solution & Answer

Explanation of Solution

Flexible Budget Performance Report of Beech Company for the month of May

Particulars	Flexible Budget in $	ActualIn $	VariancesIn $
Sales	105000 units	105000 units

Revenue	1,300,000	1,275,000	25,000 U
Variable Cost	750,000	712,500	37,500 F

Contribution	550,000	562,500	12,500 F
Fixed Cost	300,000	300,000	-

Profit	250,000	2,62,500	12,500 F