Flexible Budgets

Team A

ACC/543

February 3, 2014

Thomas Frank

Flexible Budgets

The flexible budget steps beyond the master budget in organizing projected revenue and cost data. Managerial accountants utilize the flexible budget to accommodate for varying levels of activity such as sales volume. As the name implies, "flexible budgets flex, or change, when the volume of activity changes" (Edmonds, Edmonds, Olds, McNair, Tsay, & Schneider, 2007, p. 1061). Both the flexible budget and the master budget (also called a static budget), utilize "the same per unit standard amounts and the same fixed costs" (Edmonds, Edmonds, Olds, McNair, Tsay, & Schneider, 2007, p. 1062).

Insert: Zumara's paragraph on relationship between fixed and variable costs

Insert: Charles's paragraph on...