
Concept explainers
a
Introduction:
The responsibility report prepared by the management reflects the comparison of performance estimated with the actual result of the operations. It helps in determining the profitability and efficiency of the division in operating their respective tasks.
To prepare: The manufacturing
b
Introduction:
A flexible budget is prepared by considering the activity level of actual performance but the price of the budget. Due to the similar platform of comparison, the flexible budget report is considered to be more reliable than the static budget.
To prepare: The flexible budget report.
c
Introduction:
The budget prepared by the management helps in comparing the actual results with the standard estimated by the management before the start of operations. It evaluates the efficiency of the management in cost control.
: Whether the management is efficient or inefficient in controlling

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Chapter 25 Solutions
EBK ACCOUNTING PRINCIPLES
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