Explain how a flexible budget can be of value to businesses

Q: What are the advantages and disadvantages of bottom-up budgeting process? What is budgetary slack?…

A: Bottom-up Budgeting Process It is a budgeting method that starts at the department level and moves…

Q: if an organisation is experiencing budget difficulty, what steps are suggested to improve compliance…

A: Budget is a financial tool used in planning, programming and control of business activity for a…

Q: Explain the benefits of budgeting.

A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…

Q: How does doing budget benefit companies?

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: What is the major benefit of tying a budget to the overall goals of the compan

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: Question: What is the purpose of a flexible budget? a) To control costs and evaluate performance b)…

A: A flexible budget is designed to adapt to changes in business conditions. The flexible budget takes…

Q: Which provides the most benefit to an organization, a budget or the budgeting process? Why?

A: Budget: A budget is a systematic allocation of resources to different departments depending on the…

Q: Various types of budgets facilitate understanding about the big picture of a business. There are…

A: Budget A budget is the estimate of incomes and expenses over a specified period. A budget helps in…

Q: Why do companies prepare budgets?

A:

Q: Why might managers find a flexible-budget analysis more informative than a static-budget analysis?

A: Static Budget: Static budget is a fixed budget prepared for a particular period of time without…

Q: What are the advantages and disadvantages of the participatory approach to budgeting?

A: Participative budgeting is a budgeting process in which the people who are in the lower levels of…

Q: Explaining Costs That Change with Flexible Budget Activity When preparing a company's flexible…

A: Budgets: Budgets are prepared for the planning and controlling purposes. Budgets facilitate…

Q: What is a flexible budget? Explain? Give example?

A: Budgeting is a process to prepare the financial statement by the manager to estimate the…

Q: Q.Why might managers find a flexible-budget analysis more informative than a static-budget analysis?

A: Budgets are helpful for huge companies with several complex activities as well as small companies.…

Q: What are the benefits of tying a budget to the overall goals of the company?

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: Explain the difference between static and flexible budgets.

A: Flexible Budgets: Flexible budgets are prepared for various levels of activities or outputs. This…

Q: Flexible budgeting and variance analysis are critical tools for effective financial management in…

A: A flexible budget is a budget that adjusts or flexes for changes in the volume of activity. The…

Q: Budgets are an integral part of management control systems. Evaluate this statement with real life…

A: As you have posted multiple independent questions, we are answering the first question. Kindly…

Q: Describe your understanding of budgets, both fixed and flexible, in the context of controlling and…

A: Organizations produce budgets for a variety of purposes, including cost control, performance…

Q: Which of the following should a manager consider when creating a sales budget ? All of the listed…

A: The objective of the question is to identify the factors that a manager should consider when…

Q: Q.Describe the steps in developing a flexible budget.

A: Flexible Budget: A flexible budget is a financial plan prepared for a particular period of time on…

Q: What are some of the challenges in creating a budget for a company.

A: The objective of this question is to understand the various challenges that a company might face…

Q: budget flexed? Give an Example.

A: Flexing of budget is a method used to prepare estimates of the future level of revenues and…

Q: difference between a flexible budget and a static budget?

A: A budget can be defined as an estimation or forecast of the income, revenue, and expenses for a…

Q: When would a static budget be effective in evaluating a manager performance

A: We know that budgeting is a planning tool through with entities define a predefined target for…

Q: Identify the main purpose of a flexible budget for managers.

A: Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output.…

Q: Describe the steps in developing a flexible budget.

A: Flexible Budget: Flexible budget is a financial plan prepared for a particular period of time on…

Q: what is the difference between bottom up and beyond budgetin

A: Budgeting is the process of determining the expected costs and revenues for a particular period by…

Q: how budgeting is useful in managing businesses?

A: Budget: The forecast of transactions on the basis of the available resources for a particular period…

Cash budget

A cash budget is an estimate of an organization's cash flow for the future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future. If cash receipts are insufficient to cover future expenses, an organization may plan to obtain funds from other sources. After estimating the sales, purchase, and capital expenditure budgets for the year, management develops a cash budget. These budgets are created to ensure that an organization's cash flow is managed. It is important to note that only cash transactions are recorded when actual cash enters and exits an organization.