BUS 254 Chapter Notes - Chapter 11: Profit Center, Eval

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Marco Faccone

Document Summary

Identifies name of budget report, freq of report, purpose, recipient. Static budget reports = project budget data at 1 level of activity (ignore data for diff levels) Flexible budget = project budget data for various levels of activity. Appropriate for eval (cid:373)a(cid:374)ager"s effective(cid:374)ess i(cid:374) co(cid:374)trolli(cid:374)g costs. When actual level of activity close to budget activity level. When behaviour of costs fixed in response to changes in activity. Series of static budgets at diff activity levels. Fewer costs controllable in lower levels of management. Begin w/ lowest level of responsibility & move up. Comparative evals, provide incentive for manager to control costs. Costs & revenues directly assoc. w/ specific level of management responsibility. Costs & revenues controllable by specific level of management responsibility. Budget data can be dvlped for eval (cid:373)a(cid:374)ager"s effective(cid:374)ess i(cid:374) co(cid:374)trolli(cid:374)g costs. Total budgeted costs = fc + vc (total vcu times activity level)