Your supervisor asks you to produce a budget variance report. Using the most common definition of “budget variance analysis,” what information is your supervisor looking for and why is this important in budget management?

Q: Managers should be closely involved in preparing their responsibility accounting budget. How true is…

A: Generally, managers should be involved in preparing their responsibility accounting budget.

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: Which of the following is part of the budget preparation process EXCEPT? a) Available resources b)…

A: Budget can be termed as estimation of Revenue and Expenses that can happen in a future. In a simple…

Q: When a variance occurs between the budgeted amount and the actual expenditures, it is important to:…

A: A variance is the difference between a budgeted, planned or standard cost and the actual amount…

Q: Describe the benefits of preparing a budget to an organization

A: Budget means what is required to be done compair it actual to what is actually happned in other…

Q: Explain the value of utilizing a balance sheet to make a budget adjustment. What is the danger?

A: The budgeted balance sheet is usually prepared at the start of the fiscal year. The organization…

Q: Budgets, Fixed Budgets and Flexible Budgets

A: Fixed Budgeting:The leased Institute of Management Accountants (UK) defines a hard and fast budget…

Q: How are budgets used as monitoring and control tools?

A: Budgets are quantitative statements that contain the details of the planned revenues, expenditures,…

Q: Master budget is compiled of several operating budgets. Of these operating budgets, which budget…

A: the operating budget is such a statement that present the financial plan for each of the…

Q: Which budget is prepared for Advertising, Salary, and Market Analysis? A. Operating Budget B. Sales…

A: The question is asking us to identify the type of budget that is typically used to plan for expenses…

Q: 1. Why it is important to get input from the sales manager in preparing a master budget? 2. What is…

A:

Q: Why would management take extra effort to ensure approximate budgets for direct labor, direct…

A: There are a few reasons why management might take extra effort to ensure approximate budgets for…

Q: While preparing the production budget, the Production Manager checks on and co-ordinates with : a.…

A: production budget:- production budget is plan , which shows the estimated production manufacturing…

Q: The usual starting point for a master budget is: O the budgeted income statement. O the sales…

A: Income Statement :— It is one of the financial statement that shows profitability of company during…

Q: What is microcosting, and what two types of expenses do you have to consider when doing a budget.…

A: To help medical and strategic decision address worries about increasing healthcare costs, creating…

Q: What is the first step in preparing a master budget ?

A: The master budget seems to be the budget that combines all of the other budgets into a single budget…

Q: Can you interpret the effect on revenue , expense and profits if the sale or production differ from…

A: Master Budget shows the estimated results that a company expects to obtain from its operations.

Q: Discuss why the production quantities that are prescribed in the production budget should be…

A: The sales budget is prepared to ascertain the projected sales during the coming period, on the basis…

Q: Why is the preparation of a sales forecast one of the earlieststeps in preparing a master budget?

A:

Q: According to institute of Cost and Management Accountants (ICMA) a budget is a plan, quantified in…

A: Budgets are quantitative plans which are used for allocation of resources, comparing and controlling…

Q: Responsibility reports should be simple, show variances between the budgeted and actual amounts of…

A: Responsibility reports is a system of preparation of reports for each level of responsibility in the…

Q: computed in requirements 1 and 2. Was the new service a success from an overall cost-control…

A: It is  important to understand the reason of variance and the nature of various that will affect…

Q: Which budget is prepared for Advertising, Salary, and Market Analysis? A. Operating Budget B. Sales…

A: The question is asking us to identify the type of budget that is typically used to plan for expenses…

Q: Requirements and Value of Budget Reporting and Auditing Explain the requirements for…

A: The practice of gathering and presenting financial data associated with a budget is known as budget…

Q: Explain why budgets are useful and how management philosophy can influence the budget process.

A: Budget is the estimated data which is prepared or estimated in advance, in simple terms before…

Q: budgeted balance sheet sales budget production budget budgeted…

A: Budgeted balance sheet Explanation ; A financial budget has 3 elements            1. cash budget…

Q: how budget process fits into management’s planning process?

A: Planning as well as budgeting are critical components of managerial control. Efficient planning and…

Q: Why should the production requirements set forth in the production budget be carefully coordinated…

A: Lets understand the basics. Management prepares budget in order to estimate future profit and loss…

Q: How do I do a master budget? what are the steps and formulas i will need?

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

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: 1. Explain the concept of responsibility accounting and its relation with budgeting.

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

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: how would management use a Master budget?

A: A master budget is a central planning mechanism used by a management committee to direct a…

Q: How are the master budget and the production budget related? How does the understanding of the…

A: The master budget is a comprehensive financial plan that outlines a company's financial goals and…

Q: balance criteria in budgeting?

A: while making balance criteria in budgeting i always follow these steps; Establish your budgetBefore…

Q: Suggest an appropriate ‘Activity Level’ for the following budgets:                (a) Manufacturing…

A: In the process of preparation of budget, the activity level for each type of budget must be…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.