What is the difference between flexible and capacity related resources

Jan 08 AM. Vikash k answered on January 10, Solution A plan which estimates the financial activities for short-term operation is termed as budget. It deplcts the list of Do you need an answer to a question different from the above? Ask your question! We want to correct this solution. Tell us more. Was the final answer of the question wrong? Were the solution steps not detailed enough? Was the language and grammar an issue?

Didn't find yours? Ask a new question Get plagiarism-free solution within 48 hours. Review Please. Next Previous. Related Questions. What is a budget? Multiple-Choice Questions 1. In a performance report that details the spending and efficiency variances, which of the following columns will be found? A cost formula for each item b. A budget for actual hours for each item c. It is a competency that must be acquired for anyone who is working in finance and accounting and is also a topic which is guaranteed to come up on your Performance Management PM exam.

Expect to see it in Sections A or B, and there is a fair chance of it appearing in Section C, so you need to be ready to handle mark questions from both a numerical and a discussion-based perspective. This series of articles will cover the budgeting approaches flexible budgeting, activity-based budgeting, rolling budgeting, zero-based budgeting, and beyond budgeting. A flexible budget is a summary of revenues and costs across a range of different activity levels.

A critical aspect of this approach is to determine fixed and variable costs, which can then be expressed as a linear equation:. With an understanding of revenue per unit and cost behaviours ie fixed, variable, and stepped , financial results can then be budgeted within a range of activity levels. Ensure you know the difference between these terms. Flexible budgeting happens at the beginning of a budgeting period—revenue, costs, and profit are forecast across a range of activity levels.

With this information, a flexed budget can then be created at the end of the budget period based on the actual activity level. With flexible budgeting, managers will be able to plan and forecast more accurately.

Performance management can be more meaningful as actual results can be easily compared to flexed results — total variances can then be calculated for each revenue and cost. However, some businesses may have a high level of indirect costs, making it difficult to separate fixed and variable costs from total indirect costs.

Corfe Co is a business which manufactures computer laptop batteries and it has developed a new battery which has a longer usage time than batteries currently available in laptops. The maximum production capacity of Corfe Co is , units.