Exam II I. TRUE / FALSE 1. A budget generally includes both financial and nonfinancial aspects of the plan. 2. The revenues budget should be based on the production budget. 3. A favorable variance should be ignored by management. 4. The direct manufacturing labor price variance is likely to be unfavorable if lower-skilled workers are put on a job. 5. For fixed overhead costs‚ the flexible-budget amount is always the same as the static-budget amount. II. MULTIPLE CHOICE
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mechanism for the organisation. Discuss. “It’s clearly a budget. It’s got a lot of numbers in it” (George W. Busch 2005). This definition of a budget can be supplemented using the Oxford dictionary‚ which states that a budget is an estimate of income and expenditures for a set period of time. Nowadays almost every business uses budgets and managers use them as a tool in order to set targets. In other words managers can‚ with the use of budgets‚ explain in a financial way what are the objectives of
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of budgets‚ which‚ when brought through‚ from an integrated business plan known as master budget. The master budget is an essential management tool that communicates management’s plan throughout the organization‚ allocates resources‚ and coordinates activities. Budgeting: A budget is a detailed plan for acquiring and using financial and other resources over a specified period of time. It represents a plan for the future expressed in formal quantitative terms. The act of preparing a budget is called
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TOWN OF BELLINGTON Exhibit 1. Performance Budget – Snow Removal Department October-December Static Budget Flexible Budget Actual Performance Difference between static budget and actual performance Difference between flexible budget and actual performance Snow days 10 12 12 (2) -- Cubic miles of snow 1‚250 1‚500 1‚500 (250) -- Costs Drivers $18‚000 $21‚600 $24‚675 $(6‚675) $(3‚075) Supplies 1‚125 1‚350 1‚875 (750) (525) Fuel 1‚750 2‚100 2‚500 (750) (400) Maintenance 1‚375 1‚650 2‚200
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04-09 Budgetary process 04 Zero based budget 05 Memorandum 07 Financial control 09 Conclusion 10 Bibliography 11 Appendix 12 .Introduction This report is analysing University of West London’s new budgetary process for 2012 Main body Budgetary process When preparing the budget in UWL‚ it is useful for reconciling the conflicts between the components
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Managerial Accounting: Case 9-30 Earring Unlimited (Master Budget with Supporting Schedules) Chapter 9 Case 9-30 Master Budget with Supporting Schedules You have just been hired as a new management trainee by Earrings Unlimited‚ a distributor of earrings to various retail outlets located in shopping malls across the country. In the past‚ the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting
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accounting system and when you try something like this you will always run into some problems‚ but Robert is creating a culture of resentment. Robert Ferguson is using a static planning budget to analyze the performance of each department. Garrison‚ Noreen & Brewer (2012) define a planning budget as a budget “prepared before the period begins and is valid for only the planned level of activity (p.385)” Robert is using a budgeted level of activity and comparing it to the actual level of activity
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introduction the pestle analysis is a set of tools used to analysis and evaluate various factors which determines and affects the environment of an organization‚ which should be identified in order to aid company’s so they can achieve optimum performance . (c) . pestle analysis’ also help in the decision making process a as it gives companies more knowledge about their business . pestle analysis is divided in 6 main categories which are Political‚ Economic‚ Social ‚ Technological‚ Legal‚ Environmental
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A1. During the evaluation of Competition Bike’s budget schedule a few areas of concerns were identified within the budgeting and proformas. The first area of concern within budget was advertising. The advertising was budgeted for $28‚412; they may want to consider increasing their marketing to reach a wider audience to boost sales. In year 6 the advertising was $23‚820‚ then increased year 7 $32‚760‚ and year in 8 decreased to $27‚428. They need to increase their exposure within the bike market
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income and expenses for the rest of 2013 to prepare for a budget. There is no penalty for being a bad estimator since the goal of the project is to learn more about yourself and/or your family. Then based on your estimates construct a preliminary budget for the rest of the year from Oct 1‚ 2013 to December 31‚ 2013. Knowledge of your income‚ consumption patterns‚ and life style is an important basis for your financial planning decisions. The budget is worth another 20 points. C. The spending
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