Difference between a static budget and a flexible budget, Managerial Economics

Assignment Help:

1. What is the difference between a static (master) budget and a flexible budget?

Ans: static budget is where a budget doesn't change a volume changes. An example could be that if the budget started out at $300,000, yet sales were $500,000, the budget would remain at $300,000. A flexible budget would adjust for changes in activity and volume either via an increase or decrease in price.

Related Discussions:- Difference between a static budget and a flexible budget

Distinguish between moral hazard and adverse selection, Question: i) T...

Question: i) The manager of Top Rock Company is introducing a new product that will yield $200 millions in profits if the economy does not go into recession. However, if a rec

Cheap labour - reason for protection, Cheap Labour It is often argu...

Cheap Labour It is often argued that the economy must be protected from imports which are produced with cheap, or 'sweated", labour. Some people argue that buying foreign

Structural unemployment - reason for protection, Structural Unemployment ...

Structural Unemployment The decline of the highly localized industry due to international trade causes great problems of regional (structural) unemployment. If it would take

Shift in the supply curve, Shifts in the supply curve Shifts in the su...

Shifts in the supply curve Shifts in the supply curve are brought about by changes in factors other than the price of the commodity. A shift in supply is indicated by an entir

Managerial revenue product, assumptions and limitation

assumptions and limitation

Ans, State the difficulties in the measurement of profit.

State the difficulties in the measurement of profit.

Corporate profit maximization , Difference between corporate profit maximiz...

Difference between corporate profit maximization and maximization of shareholder wealth? Ans) Sure, profit maximization relates to profits *only* while shareholder wealth also i

Production-possibilities, a) A change in demand means that: b) On the pr...

a) A change in demand means that: b) On the production-possibilities drawing, unemployment is represented by:

Short-term policies to cure balance of payment deficits, Short-Term Policie...

Short-Term Policies Deflation is a policy of reducing expenditure with the intention of curing a deficit by reducing the demand for imports. This reduction of expenditure m

Ols estimator, The variance of the OLS estimator is VAR( ^B)=σ 2 /ns 2 x ...

The variance of the OLS estimator is VAR( ^B)=σ 2 /ns 2 x , where s 2 x =£x 2 /x You're hired to estimate and you're going to be paid according to the accuracy of your esti

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages