Transcription of Chapter 7: FLEXIBLE BUDGETS & VARIANCE ANALYSIS
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Chapter 7: FLEXIBLE BUDGETS & VARIANCE ANALYSIS
Chapter 7: FLEXIBLE BUDGETS & VARIANCE ANALYSIS & VARIANCE ANALYSISH 13 Horngren 13e 1 Learning Objective 1: Distinguish a static budget .. the master budget based on output planned at start of period from a FLEXIBLE pppbudget.. the budget that is adjusted (flexed) to recognize the actual output level2 Learning Objective 1: Distinguish a static budget .. the master budget based on output planned at start of period from a FLEXIBLE pppbudget.. the budget that is adjusted (flexed) to recognize the actual output level3 Learning Objective 2: Develop a FLEXIBLE budget.. proportionately increase variable costs; keep fixed costs the same and compute FLEXIBLE -budget variances .. ppgflexible-budget VARIANCE the difference between an actual result and a FLEXIBLE -budget variances each sales-volume VARIANCE is the difference between a FLEXIBLE -budget amount and a static -budget amount4 Learning Objective 2: Develop a FLEXIBLE budget.
& VARIANCE ANALYSIS 3 H 1H orngren 13e 1 Learning Objective 1: Distinguish a static budget . . . the master budget based on outppp put planned at start of period from a flexible budget. . . the budget that is adjusted (flexed) to recognize the actual output level 2
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