COB 242 Quiz: ch. 8, 9, 10 quiz prep
Premium

2 Pages
45 Views
Unlock Document

Department
College of Business
Course
COB 242
Professor
Sandra Cereola
Semester
Spring

Description
Ch. 9: Flexible Budgets & Performance Analysis Some cost (variable and mixed) should be different from what is shown in planning budget Planning budget not used to access performance Flexible Budget: shows what revenues & costs should have been for the actual level of activity in the period  Fixed component + variable component * level of activity Difference between flexible budget & planning budget = activity variance Unfavorable: flex. Budget cost > plan. Budget cost Favorable: flex budget cost < plan budget cost Higher Activity  Higher Profit and Higher costs Flexible Budget & Actual Budget  Revenue and Spending Variance Planning Budget & Flexible Budget  Activity Variance Static budgets: only one level of activity Not realistic for other levels of activity (especially is Variable Costs are significant) Actual Costs & Budgeted Costs: will differ because: 1. Actual level of activity differs from budgeted 2. Use of resources by manager Variances Template (Actual Hours * Actual Rate) (Actual Hours * Standard Rate) (St. Hours * St. Rate) Rate Variance Efficiency Variance AQ (SP – AP)
More Less

Related notes for COB 242

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit