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Budgeting is a tool used by management for performing the functions of planning, coordinating, and controlling operations of a business. The textbook, Managing Accounting Concepts, describes 2 main types of budgeting: static budgets and flexible budgets.
Question 1: Differentiate between the 2 types of budgets.
Question 2: Provide an example of the type of business or company that would benefit from using a flexible budget.
Question 3: Provide support for your business selection and include the advantage for using a flexible budget over a static budget.
What the capital balances of O and M on January 1, 2003 were? The partnership agreement provides O with an annual salary of P10,000 plus a bonus of 5%.
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