All categories

3 years ago

The purpose of a flexible budget is to:

Business

1 answer:

Ksenya-84 [330]3 years ago

8 0

Answer:

c. update the static planning budget to reflect the actual level of activity for the period

Explanation:

A flexible budget is a financial plan of expenses and revenues based on the actual level of output. A flexible budget adapts to changes in prices and company needs. Because the budget varies with the market condition, it is called a variable cost.

Due to their variable nature, flexible budgets are used to update the static estimates at the end of a period. The company compares the actual result in the flexible budget with that of a static budget. The management uses a flexible budget to evaluate the business performance for the period. Specific areas of success and failures are highlighted. Decisions on areas that need improvement can then be made.

You might be interested in

Southland Company is preparing... Southland Company is preparing a cash budget for August. The company has $18,300 cash at the b

Alekssandra [29.7K]

Answer:

The Company must borrow $5400

Explanation:

To calcualte the amount rewquired to be borrowed, we first need to calculate the cash shortage from the minimum cash requirement.

The cash at the end of the August will be,

Cash at the end = 18300 + 123400 - 137100 = $4600

The minimum requirement is $10000.

The shortage of cash is = 10000 - 4600 = $5400

Thus, the Company must borrow $5400

7 0

3 years ago

Your broker has recommended that you purchase stock in Alacan, Inc. She estimates that the 1-year target price is $63.00, and Al

Bogdan [553]

Answer:

$60.87

Explanation:

You can solve this question using time value of money concept. Since this is a dividend paying stock, the recurring dividends are annuities, next year's price is the future value, total duration is 1 year. Use these to calculate the current price; PV

Total duration; N = 1

Interest rate per year ; I/Y = 15%

Future value; FV = 63

Recurring dividend payment; PMT = 7

then compute the present value; CPT PV = 60.87

Therefore, the intrinsic value of this stock is $60.87

3 0

3 years ago

Theo Chocolate has decided to purchase a fleet of climate controlled trucks which will allow them to distribute and deliver thei

Ivahew [28]

The decision of the firm to purchase a fleet of climate controlled trucks for distribution of its product is an example of ·Differentiation strategy.

<h3>What is a Differentiation strategy?</h3>

A differentiation strategy is a strategy adopted that make the offered goods or services more unique compared to their competitors.

In conclusion, majority of firms use the differentiation strategy to the differentiate between their products and the competitors.

Read more about Differentiation strategy

<em>brainly.com/question/14682824</em>

8 0

2 years ago

Mr. A and Mr. B are both riding in a "quiet" section of a commuter train. Mr. A is making a lot of noise by texting with his sma

kogti [31]

<u>Answer: </u> Option C

<u>Explanation:</u>

Conflicts arises when there is a situation that two peoples desires are in contrast. One of the best ways to handle conflicts is that to choose an approach which is suitable for the situation.

Some of the approaches that can be used in different conflicting situations are avoiding, accommodating, compromising, competing and collaborating. Here in this case Mr B showcases accommodating behavior is high on cooperativeness and holding peace. Mr B tries to maintain his perspective. Mr B has learnt the right skills and achieved his point which is reduce the noise of Mr A 's mobile sound.

7 0

3 years ago

BARSIC [14]

Answer: The answer is $128,000

Explanation:

$ $ $ $

Selling price. 180,000. 140,000. 120,000. 60,000

Less 10% commission 18,000. 14,000. 12,000. 6,000

-------------- -------------- --------------- -------------

162,000. 126,000 108,000. 54,000

Less cost. 128,000. 133,000. 90,000. 45,000

--------------- ---------------- --------------- ----------------

34,000 (7,000) 18,000. 9,000

Add: replacement cost 120,000. 130,000 110,000. 41,000

------------------ --------------- --------------- --------------

Inventory 154,000. 137,000. 128,000. 50,000

----------------------- ----------------- ------------------ -----------------

3 0

3 years ago