ACC206Week4DQ2FlexibleBudgetsACC206Week4DQ2FlexibleBudgetsFlexiblebudgetsprovidedifferentinformationthanstaticbudgets.Discusssomeofthesedifferences.Isaflexiblebudgetalwaysbetter?Aretheretimeswhenyou'drecommendusingastaticbudgetoveraflexiblebudget?GuidedResponse:Reviewyourpeers’postsandrespondtoatleasttwoofyourclassmates.Discusswhetheryouagreeordisagreewiththeusesofaflexiblebudgetandwhy.WelearnedinchaptersixthatBudgetsarefinancialplansthataredetailedandthatquantifyfutureexpectationsandactionsforcompanies.“Theyprovidebenchmarksagainstwhichtocompareactualresults,establishguidelinesforexpenditures,andmaybeusedtoestablishforward-lookingguidancetopersuadeinvestorsandcreditorstoinvestorlendtoabusiness.”(chap.6.1)Thetwotypeofbudgetsinquestionaretheflexiblebudgetandthestaticbudget.Thestaticbudgetwasdevelopedforasinglelevelofactivity;howevertheproblemwiththisbudgetisthatitdoesnotalwaysaccountforvolumefluctuations.Ontheotherhand.adiustingbudgetsfortheeffectsofvolumefluctuationsisthegoalofa+StudyXYACC 206 Week 4 DQ2 Flexible Budgets
A discussion on flexible budgets and their role in financial decision-making.
Christopher Lee
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12 months ago
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