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Budgets Based On The Actual Level Of Output Rather Than The Output Originally Budgeted Are Called

Flexible Budget Overhead Cost Variances And Management Control

Budgeting

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Chap 7

Budget Choice Planning Versus Control

Budgets based on the actual level of output rather than the output originally budgeted are call.

Budgets based on the actual level of output rather than the output originally budgeted are called. Thereafter they step up to 80000. The minimum level approach to budgeting has been more widely used in government than in business organizations. A flexed budget is drawn at the level of activity achieved.

Question 10 225 out of 225 points budgets based on the actual level of output rather than the output originally budgeted are called selected answer. A flexible budget variance is the difference between actual costs and the flexible budget cost for the actual output. In computing the overhead variances miles management discovered that it had used 80000 pounds of direct material rather than the budgeted amount of 88000 pounds.

The minimum level approach to budgeting budgets costs for a coming period as a dollar or percentage change from the amount budgeted or spent in some previous period. Budgets based on the actual level of output rather than the output originally budgeted are called. The flexible budget called for 352000 in variable overhead but actual variable overhead was 400000.

Often the levels chosen are where the behaviour of costs change and the flexible budgets make it easier to draft budgets at other levels of activity. Acct quiz quizz 11 1 budgets based on the actual level of. A flexible budget is prepared after the fact as a means of comparing actual costs with the budgeted costs for the actual output level achieved rather than comparing actual costs.

Examples budgeted output is the output that is planned to be achieved by the organisation in a given periodprocess and standard output is that output for which the standards are expressed. The minimum level approach to budgeting budgets physical inputs and costs as functions of planned activity. Budgets based on the actual level of output rather than the output originally budgeted at one level of expected output are called b flexible budgets.

Sign up to view the full content. For output of 1 10000 units fixed costs are 50000. Activity budgets 2flexible budgets 3.

Management would focus their attention on identifying the optimal set of activities rather than just the outputinput relationships. The budgeted amount of advertising for a future period is often based on the budgeted or actual advertising. Four planning approaches to operating budgeting.

This preview shows pages 15. Budgeted indicates a specific level of activity and standard may indicate any level of activity.

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