Chat with us, powered by LiveChat Analyze the difference between a static budget and a flexible budget, including the importance of each - Essay Masters

Analyze the difference between a static budget and a flexible budget, including the importance of each

Week 6 Assignment – Case on Budgeting

Overview

You are hired as a new cost accountant to Ciccetti Corporation. The company manager, David, is having a meeting with you in his office. He brought you this budgeted income statement that was completed by the previous cost accountant. David asks you to provide him with a report explaining the statement in clear, straightforward language, and how you plan to handle the annual budget.

Flexible Budget Performance Part 2

  Flexible Budget Activity Variances Planning Budget

Customers served (q) 36,000 33,000

Revenue ($4.80q) $172,800 $14,400 F $158,400

Expenses:  

Wages and salaries ($36,900 + 1.60q) 94,500 4,800 U 89,700

Supplies ($0.90q) 32,400 2,700 U 29,700

Insurance ($13,300) 13,300 0 13,300

Miscellaneous Expense ($6,300 + $0.40q) 20,700 1,200 U 19,500

Total expense 160,900 8,700 U 152,200

Net operating income $11,900 $5,700 F $6,200

Instructions

Write a 3 page report in which you:

1. Explain the budgeted income statement.

2. Outline how you would create annual budgeted financial statements.

3. Analyze the difference between a static budget and a flexible budget, including the importance of each.

4. Evaluate the importance of reading and correctly interpreting budgeted financial statements.

5. Use three sources to support your writing.

 

Are you struggling with this assignment?

Our team of qualified writers will write an original paper for you. Good grades guaranteed! Complete paper delivered straight to your email.

Place Order Now