Budgeting Flashcards
(4 cards)
Flexible Budget
A budget prepared for several possible levels of production (or adjusted for the level of production achieved.
Steps to reconstruct flexible-budget analysis
Step 1. Calculate the budgeted unit sales price: Budgeted revenue / Budgeted unit sales
Step 2. Calculate the actual unit sales price: Actual revenue / Actual unit sales
Step 3. Calculate the difference between the budgeted and actual unit price: Budgeted sales price - Actual sales price
How many levels of interdependence in integrated planning?
Three
- Pooled - There is a common source of resource, but no interrelationship between the work groups.
- Sequential - The work groups coordinate the flow of information, tasks, or resources from one group to another.
- Reciprocal - Information, tasks, and resources are passed back and forth between the groups.
What are integrating mechanisms?
integrating mechanisms connect the information, tasks, and resources with the work groups in the organization. The major integrating mechanisms include:
general management systems,
increasing coordination potential, and
reducing the need for coordination.