A flexible budget provides a basis for evaluating a manager”s performance for:
|
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|
Cost |
|
|
Control |
Control |
|
|
No |
No |
|
|
Yes |
No |
|
|
No |
Yes |
|
|
Yes |
Yes |
When production levels decline within a relevant range and a flexible budget is used, what effects would be anticipated with respect to each of the following?
|
Total |
Total |
|
|
Fixed Costs |
Variable Costs |
|
|
Decrease |
Decrease |
|
|
Decrease |
No change |
|
|
No change |
No change |
|
|
No change |
Decrease |
A flexible budget is appropriate for:
|
Direct Labor |
Manufacturing |
|
|
Costs |
Overhead Costs |
|
|
No |
No |
|
|
Yes |
Yes |
|
|
Yes |
No |
|
|
No |
Yes |
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