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- https://biz.libretexts.org/Bookshelves/Accounting/Managerial_Accounting_(OpenStax)/07%3A_Budgeting/7.05%3A_Prepare_Flexible_BudgetsA flexible budget on the other hand would allow management to adjust their expectations in the budget for both changes in costs and revenue that would occur from the loss of the potential client. For ...A flexible budget on the other hand would allow management to adjust their expectations in the budget for both changes in costs and revenue that would occur from the loss of the potential client. For example, based on the energy per unit reported, management may decide to change the product mix, the amount that is outsourced, and/or the amount that is produced.1 If the energy output isn’t correct, the decisions may be wrong and create an adverse impact on the budget.
- https://biz.libretexts.org/Bookshelves/Accounting/Managerial_Accounting_(OpenStax)/08%3A_Standard_Costs_and_Variances/8.05%3A_Compute_and_Evaluate_Overhead_VariancesIf we compare the actual variable overhead to the standard variable overhead, by analyzing the difference between actual overhead costs and the standard overhead for current production, it is difficul...If we compare the actual variable overhead to the standard variable overhead, by analyzing the difference between actual overhead costs and the standard overhead for current production, it is difficult to determine if the variance is due to application rate differences or activity level differences.
- https://biz.libretexts.org/Bookshelves/Accounting/Principles_of_Managerial_Accounting_(Jonick)/07%3A_Budgeting/7.03%3A_Flexible_BudgetThe flexible budget is more useful to managers since budgeted costs can be compared to actual costs for several activity levels. The example of the flexible budget for the Packing Department shows fou...The flexible budget is more useful to managers since budgeted costs can be compared to actual costs for several activity levels. The example of the flexible budget for the Packing Department shows four possible levels of production: 10,000; 12,000; 15,000; and 20,000 units. A flexible budget is basically a menu of static budgets to select from based on the number of actual units involved.
