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: How are budgets used as monitoring and control tools?

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

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: Please explain why the timing of the direct materials purchases should be closely coordinated with…

A: Budgets:- Budget is referred as the financial plan of revenue and expenses pf particular company on…

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: 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: How does the use of a time-driven activity-based costing (TDABC) system facilitate the preparationof…

A:

Q: significant of variance analysis in cost management.

A: Variance analysis is a tool in cost management to compare and analyze variations in budgeted costs…

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: hat ty

A: Variance analysis is a summary statement which demonstrate the difference between planned…

Q: The refers to a measure of acceptable performance established by management a guide in making…

A: The answer is option b standards

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: 1. How is the flexible budget used within the variance analysis system to evaluate effectiveness and…

A: 1) Flexible budget refers to a budget that flexes with change in volume or change in activity. It is…

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: An activity variance is calculated by comparing the: Multiple Choice planning budget to the actual…

A: Activity variance measures the difference between planning budget and the flexible budget.…

Q: Describe how flexible-budget variance analysis can be used in the control of costs of activity…

A: Flexibe-budget variance:

Q: What steps should be considered if a budget is to be set and later have its results evaluated? What…

A: The budget refers to an estimate made for all possible income and expenses, based on past records…

Q: Which of the following is true in a bottom-up budgeting approach?   Group of answer choices…

A: Bottom-Up Budgeting Approach : It is one type of budgeting which starts from Bottom Departmental…

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: What are the major objectives of budgeting? Briefly describe the type of human behavior problems…

A: 1. Objectives of budgeting: Anticipation of future financial condition and future needs for funds…

Q: The process of creating a formal plan and translating goals into quantitative form is Process…

A: The process of creating a formal plan and translating goals into quantitative forms is known as…

Q: Briefly describe the components of a master budget for a manufacturing organization.

A: Answer:-  Master budget meaning:- A master budget is thorough financial planning document that…

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: 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: Based on the content of this module, what advice would you give to someone starting out with…

A: Variance analysis is used to identify the variations between data or figures of two balances of the…

Q: When analyzing an organization's budget using 2-variance analysis, the 2 elements used are volume…

A: The correct answer is: b. price varianceA 2-variance study of an organization's budget includes two…

Q: In a manufacturing company, what are the types of budgets included in the master budget? Describe…

A: Master Budget:   The master budget is a collection of budgets that is used by the company for…

Q: What are the relations among standard costs, flexible budgets, variance analysis, and management by…

A: Budgetary control focus on profits maximization of the enterprise and to accomplish this purpose,…

Q: Each of the following statements includes a pair of words within parenthesis. Indicate which of the…

A: Each of the following statements includes a pair of words within parenthesis. Indicate which of the…

Q: Why is it a good idea to create a “Budgeting Assumptions” tab when creating a master budget…

A: Master budget: Master budget is an interrelated budget that collectively summarizes all the planned…

Q: Explain briefly how a budget can be used in costing products.

A: Product cost refers to the costs incurred to create a product. These costs include direct labor,…

Q: Which of the following accounts would appear ona budgeted balance sheet? Multiple Cholce All of the…

A: Solution: In a Balance sheet, Assets, liabilities and Equity accounts are represented. However…

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.