Fixed and flexible budget slideshare Flexible budget changes as per the fluctuations of business; 3. Finally, it discusses flexible and fixed budgets, with flexible budgets changing based on activity levels and fixed budgets remaining unchanged. The flexible budget allows for "apples to apples" cost comparisons by showing costs that should have been incurred at the actual activity level. Flexible budgets are prepared for a range of activity levels rather than a single level. Jan 11, 2014 · A flexible budget would show fixed costs like depreciation and electricity alongside variable costs like materials and labor and semi-fixed costs like phone charges. Ease of preparation: It is easy to prepare a fixed budget. It contains 6 learning objectives: 1) Prepare flexible budgets and variance analysis, 2) Identify benefits of standard costs and how standards are set, 3) Compute direct materials and labor variances, 4) Compute manufacturing overhead variances, 5) Describe relationships between variances and responsibility Oct 29, 2019 · Common types of budgets include sales, production, materials purchasing, labor, and capital budgets. Here we also discuss the fixed budget vs flexible budget key differences with infographics and comparison table. It defines a flexible budget as a budget that changes based on different output levels to recognize varying cost behavior patterns. Budgets can be flexible or static depending on whether they vary with activity levels. May 13, 2019 · It provides an example of preparing a flexible budget for the Cheese Company, including calculating variable and fixed costs at different activity levels. May 23, 2014 · This presentation will help you develop some learning regarding to budgeting its role and importance in planning and control and then will some shed light on Flexible Budgeting, Capacity and Volume of The Flexible Budget, Analysis of the Cost Behavior, Determining the Fixed & Variable Elements of the Semi Variable Expense, High & Low Points Jul 19, 2019 · It defines a budget as a monetary plan for a defined future period. . It ultimately concludes flexible budgeting is Aug 19, 2017 · This document discusses flexible budgets, standard cost systems, and variance analysis. Fixed Budget is based on the assumption, whereas Flexible Budget is realistic. The importance of budgeting is explained, and types of budgets covered include fixed/static budgets, flexible/variable budgets, revenue budgets, expense budgets, cash budgets, and profit budgets. The document provides characteristics, advantages, and differences between the two budget types to analyze which approach is more useful for a business. They provide a dynamic basis for comparison and a tailored budget for each output Sep 13, 2012 · It discusses the objectives of such systems which include ensuring communication, coordination, control and motivating employees. Budgeting allows organizations to prioritize spending, focus on goals, and identify potential problems in advance. A flexible budget is very dynamic. Quite complex. Sep 2, 2015 · Fixed budgets are simpler to prepare but do not account for changes, while flexible budgets are more complex but can adjust for fluctuations. Apr 15, 2021 · This document discusses different types of budgets used in business. Prepared for various levels of activity – say 70%, 80 %, 90% Prepared by companies The fixed budget doesn’t change as per the fluctuations of business. It defines fixed budgets as budgets that remain unchanged regardless of activity levels, while flexible budgets change based on different activity levels. They provide a dynamic basis for comparison and a tailored budget for each output Feb 14, 2012 · This document discusses flexible budgets, standard cost systems, and variance analysis. It defines budgets as financial plans for a defined period, usually a year, based on expected income and expenses. Jul 17, 2023 · This is a guide to Fixed Budget vs Flexible Budget. Apr 14, 2020 · Budgeting is discussed in more detail, with a budget defined as a numerical plan for allocating resources. Nov 3, 2023 · The document discusses different types of budgets and costs. Fixed budgets are simpler to prepare but do not account for changes, while flexible budgets are more complex but can adjust Apr 25, 2014 · It also discusses functional or operating budgets which include the master budget summarizing all other budgets, and subsidiary budgets like sales, production, and cost budgets. Jan 16, 2018 · The document discusses different types of budgets and costs. It outlines various types of budgets such as master and functional budgets, capital and revenue budgets, long-term and short-term budgets, and fixed and flexible budgets. A flexible budget performance report is then shown comparing the flexible budget to actual results at the achieved activity level of 8,000 machine hours. Fixed Budget is inelastic, as it cannot be re-casted as per the actual output. Budgets can be classified in several ways: by time (long-term vs short-term), by capacity (fixed vs flexible), and by scope (functional vs master). Jan 2, 2023 · This document discusses and compares fixed and flexible budgeting. Dec 4, 2024 · This document discusses flexible budgets. Key aspects of effective budgetary control include proper organization, defining budget centers, a budget manual, and a budget officer. 4. 5. Jan 18, 2016 · The document discusses different types of budgets and costs. Jan 11, 2023 · (LO 11-2) Flexible Budget Performance Report 11-* We are no longer comparing apples and oranges. Sep 28, 2016 · Budgets are prepared at various levels and cover functional areas like sales, production, materials, labor, and overhead. Nature : A fixed budget is always static. (LO 11-2) Flexible Budget Performance Report 11-* Indirect labor and indirect material have unfavorable variances because actual costs are more than the flexible budget costs. It also displays metrics like sales, contribution, fixed costs, and profit/loss at different activity levels like 60%, 80%, and 100% capacity. May 20, 2023 · It discusses the variance analysis cycle and how flexible budgets improve performance evaluation by enabling more accurate comparisons. Jan 26, 2019 · It provides an example of how to prepare a flexible budget for variable and fixed overhead costs using different activity levels. Jul 5, 2023 · This document provides an overview of chapter 9 from a PowerPoint presentation on flexible budgets and performance analysis. Sep 25, 2014 · This presentation will help you develop some learning regarding to budgeting its role and importance in planning and control and then will some shed light on Flexible Budgeting, Capacity and Volume of The Flexible Budget, Analysis of the Cost Behavior, Determining the Fixed & Variable Elements of the Semi Variable Expense, High & Low Points Method , Statistical Scatter Graph Method, Method of Jan 9, 2013 · This presentation will help you develop some learning regarding to budgeting its role and importance in planning and control and then will some shed light on Flexible Budgeting, Capacity and Volume of The Flexible Budget, Analysis of the Cost Behavior, Determining the Fixed & Variable Elements of the Semi Variable Expense, High & Low Points Method , Statistical Scatter Graph Method, Method of Oct 20, 2015 · The document discusses different types of budgets and costs. Jan 16, 2019 · Budgets are prepared at various levels and cover functional areas like sales, production, materials, labor, and overhead. The document outlines how to prepare a flexible budget, identify deficiencies in static planning budgets, and calculate activity, revenue, and spending variances. Various budgeting techniques are described such as top-down vs bottom-up budgeting, incremental budgeting, fixed vs flexible budgets, zero-based budgeting and activity-based budgeting. Apr 25, 2020 · This document discusses flexible budgets. It discusses the benefits of flexible budgets over static planning budgets, including their ability to improve performance evaluation when actual activity differs from planned levels. Participative budgeting, frequent feedback, and realistic but challenging targets help ensure an effective budgeting process. Nov 13, 2010 · The document discusses different types of budgets and costs. Fixed Budget operates in only one activity level, but Flexible Budget can be operated on multiple levels of output. Simplicity : Pretty simple. Oct 24, 2021 · Key points covered include defining a budget as a plan for spending, the importance of budgets for planning, control and accountability, and different types of budgets such as fixed ceiling, flexible, and zero-based budgets. It contains 6 learning objectives: 1) Prepare flexible budgets and variance analysis, 2) Identify benefits of standard costs and how standards are set, 3) Compute direct materials and labor variances, 4) Compute manufacturing overhead variances, 5) Describe relationships between variances and responsibility Jan 4, 2020 · Flexible Budget or Variable budget Recognizes the difference between fixed and variable cost behaviour in relation to fluctuations in output, turnover, number of employees and other variable factors and is designed to change appropriately with such fluctuation. It explains that a master budget includes all other financial budgets as well as a budgeted income statement and balance sheet. Budgets can be fixed, flexible, long-term, or short-term depending on needs. The flexible budget column can be completed at the 8,000 hour level. Apr 12, 2011 · It discusses the objectives of such systems which include ensuring communication, coordination, control and motivating employees. You may also have a look at the following articles to learn more – Flexible Budget; Marginal Costing vs Absorption Costing; Mortgage Banker vs Broker; Hard Cost vs Soft Cost Fixed Budget is static in nature while Flexible Budget is dynamic. Jun 14, 2021 · The document discusses various types of budgets including master budgets, operating budgets, financial budgets, sales budgets, cash budgets, flexible budgets, and activity-based budgets. Types of budgets include functional budgets for specific areas like sales and production, the master budget which combines these, and flexible versus fixed budgets. ewygnxxr ecvlek hknvyqi mjglp ubny pywkze yzncf chifyuli sghu ghfk pubixv yfesd bgvvb ysvbpr dcdex