Questions and Answers

21

May'19

What is a Flexible Budget?

A flexible budget shows budget figures for different activity levels.  This means actual performance can be compared to the budget figures of the same level of activity. X   If actual activity levels are not compared to a budget with the same activity, the budget comparison is not meaningful. Apples are compared to …

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21

May'19

Budgeting for Revenue

The starting point for a budget is to estimate the revenue.   Revenue might be; the sales of a product (for a trader) the hours of service provided (for a service provider like a doctor or hairdresser) the sales of a finished good produced from raw materials and labour (for …

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13

May'19

How do you Budget for a Manufacturing Entity?

What is costing for a manufacturing business? Manufacturing involves the conversion of raw materials into finished goods.  This manufacturing involves the use of labour, materials and equipment or machinery to turn the raw materials into the finished goods. For example, a fertiliser company might buy certain raw materials (rock) and …

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