Prepare a fixed budget and a flexible budget, Managerial Accounting

Assignment Help:

Question:

A company has budgeted to produce and sell 10,000 units of a product, the selling price and the variable cost per unit of which is Rs 20 and Rs 12 respectively. Fixed costs which are budgeted at Rs 60,000 for the period are likely to rise to Rs 70,000 if activity level goes beyond 11,000 units and fall to Rs 48,000, if the activity level is less than 9,000 units. It is also estimated that variable costs will fall by 5% per unit for all units, if the activity level goes beyond 10,000 units. If the actual results for the period are as given below:

(a) Prepare a fixed budget and a flexible budget;

237_Prepare a fixed budget and a flexible budget.png

(b) Show the usefulness of fixed budgeting and flexible budgeting from the point of view planning and control.


Related Discussions:- Prepare a fixed budget and a flexible budget

Define activities based costing by horngren, Define Activities based costin...

Define Activities based costing by horngren According to horngren " ABC is a system that focuses on activities as fundamental cost object and utilizes cost of these activi

Definition of accounting, Definition of accounting Accounting is the pr...

Definition of accounting Accounting is the procedure of recognizing measuring and communicating economic information to allow informed judgments and decisions by the user’s inf

Correlation coefficient, Correlation coefficient (r) Correlation coeffi...

Correlation coefficient (r) Correlation coefficient measures the degree of association between two variables such as the cost and the activity level. r = nΣxy   -  Σx  Σy

Manufacturing cost, what are the different arguments against direct materia...

what are the different arguments against direct materials, direct labor, and factory overhead

What is ratio analysis, Ratio analysis A ratio is a simple arithmetical...

Ratio analysis A ratio is a simple arithmetical expression of the relationship of one number to another. It may be explained as the indicated quotient of two mathematical ex

Accounting , I have two problems due in two hours can you do this for me?

I have two problems due in two hours can you do this for me?

Determine the internal factors of pricing decision, Determine the Internal ...

Determine the Internal factors of pricing decision 1) Organization factor: pricing decision occur on two level in the organization. Overall price strategy is dealt with by to

Attributes of good information, Attributes of good information 1) Informa...

Attributes of good information 1) Information is anything that is communicated and is sometimes said to be processed data. It is data processed in such a way as to be of meaning

Strengths and weakness of net book value and paybac, Strengths and weaknes...

Strengths and weakness of net book value and pay back method

Advantages of marginal costing, Problem Marginal costing plays a major ...

Problem Marginal costing plays a major role in making certain decisions. It provides information to management regarding the behaviour of costs and the incidence of such costs

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd