What is the difference between a static budget and a flexible budget?
A static budget is a budget set at the beginning of the period based upon the projected sales forecast. Therefore, the costs that appear on a static budget are costs associated at the projected sales level.
A flexible budget is a budget prepared at the end of the period that is based upon the actual number of units produced. The costs that appear on a flexible budget are still budgeted costs, but they are costs based on the actual number of units produced rather than the sales forecast.
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Which of the following is an important aspect when creating a self-managed team?
A. Lessen the authority and autonomy that is granted. B. Require participation to be outside of normal working hours. C. Use some form of team compensation. D. Allow workers to simply do their own thing. E. Require voluntary only membership.
Ralph, an investigator for the Securities and Exchange Commission, goes to the offices of Trust & Worthy Accountants to inspect Trust & Worthy's clients' business records. Government inspectors generally have a right to enter business premises
A. only with a warrant. B. without a warrant. C. once the issuance of a warrant has been sought. D. under no circumstances.
Because much of the equity value of a firm ________, hedging the foreign exchange risk is difficult
A) depends on the indefinite future B) is affected by nominal exchange rate risk C) is derived from current and past cash flows only D) must be discounted a finite period of times
Henry has a defined benefit plan that promises an annual retirement benefit based on 2% of his final 5-year average annual salary for each year of service. At retirement, Henry has 21 years of service and had an average salary of $95,000 over the last 5 years. His annual benefit will be:
A. $95,000. B. $60,500. C. $49,875. D. $39,900. E. $15,200.