ACC 220 checkpoint_flexible_budgets

Apr 16th, 2015
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CheckPoint Flexible BudgetsA flexible budget is a budget that allows for change, or flexes for change in the volume of activity. If a company produces more product than what was projected in any given time period this budget allows for that change is cost. The cost being the labor hours, electricity, and material used in the production of their product, however while their costs went up so did their earnings from their sales. This is why production farcicalities use a flexed budget, it allows for a variance in their production output, whether it goes higher or lower then what is scheduled. T

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