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standard cost and standard costingto effectively control the costs of a certain organization we require a yard stick to measure the real performance
standard costit is especially serious that you establish a link between standard budgets and costs at this point you require putting in your mind to
stages of implementation of zero based budgeting 1 definition of decision packageit is the comprehensive description of the organizations activities
advantage and disadvantages of zero based budgetingadvantages 1 resources allocation is more efficient2 focus attention on values for money and makes
zero based budgeting it is referred to also like priority based budgeting it is a cost advantage approach budgeting where it is assumed that the cost
example of flexible and fixed budgeta company has budgeted to produce and sell 100000 units of cakes throughout the next period the selling price per
choice of budget flexing basis the most suitable flexing basis must be considered where it assists in the comparison of alternative budget data at
flexible budgetflexible budget is a budget that is designed to change in accordance along with the level of activity attained it includes budgeting
fixed budgetingthe master budget discussed before is a fixed budgeta fixed budget is defined via as 1 just one level of activity2 not adjusted to
cash budget - budgetary planning and controlthis can records the cash outflows and inflows that are expected to take place in respect of every
capital expenditure budget this represents the expenditure on all fixed assets throughout the budget period addition intended to profit future
development and research cost budgetthese are costs that are discretional in nature such as they are determined on need basis via the managers
administration costs budget this represents the costs of all administration expenses every department or budget centre will be responsible for the
distribution and selling cost budget this is the forecast of all costs incurred in distributing and selling the companys product throughout the
factory overhead budgetthis budget represents the forecasts of each the production variable and fixed and semi-variable overheads to be incurred
direct labour budgetit represents the forecasts of indirect and direct labour requirements to meet the demands of the company throughout the budget
direct materials budgetthis budget implies the estimated quantities and costs of every the raw materials and components desired for the output demand
sales budgetit provides volume of sales and sales mix of the recent operations the sales forecast is initially prepared and upon completion the sales
organization of budgetary controlbudgetary control ideally includes the given steps as 1 the creation of budget centres2 the introduction of
limitations of budgeting 1 too mush reliance may reason resistance or inflexibility to change2 difficult to set levels of attainment it may result
objectives of budgetary planning 1 coordinationthe budgetary process needs that visible detailed budgets are developed to cover every activity
budgetary planning and controlbudgeting refers to the process of quantifying the plans of an organization such as to enable it get its objectives in
advantages and disadvantages of uniform costingadvantages 1 it enables costs to be compared simply2 it makes it easier to computerize the accounting
requirements of uniform costing1 uniform costing systems must process the given features as2 cost reports and statements should be organized and laid
uniform costingit is a general system utilizing agreed concepts standard and principles accounting practices adopted via different entities in the