State two advantages and two disadvantages of a flexible budget.-新东方在线职业题库

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State two advantages and two disadvantages of a flexible budget.

Chapter15Budgeting

Advantages

(i) Fixed budgets make no distinction between fixed and variable costs,

(ii) Fixed budgets take no account of production shortfall.

Disadvantages

(i) Flexible budgets are more expensive to operate.

(ii) In many businesses, especially service industries, most costs are fixed over a budget period.

多做几道

What does an adverse variable overhead efficiency variance indicate and what might be the cause?

Explain briefly the possible causes of

(i) A favourable material usage variance

(ii) A favourable labour rate variance

(iii) An adverse sales volume contribution variance.

What is the relationship between the labour efficiency variance and the variable overhead efficiency variance? Why might the monetary value be different?

Explain the meaning and relevance of interdependence of variances when reporting to managers.

A balanced scorecard measures performance 什om four perspectives: customer satisfaction, growth, financial success and process efficiency. Briefly explain these processes.

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