FIXED BUDGET – CONT… - The comparison shows favourable variance in both the quarters with a net effect of RM11,500 favourable variance, as a whole.
- It can also be seen from the above that the activity levels are not defined and the comparison between actual and budgeted performance are based on purely monetary figures only.
- Designed to projects budget data for various level of activity and it is a series of static budget at different level of activity.
- Assist in decision-making where it facilitates the management to predict its performance against levels of activity through the impact of changes in variable costs and sales value.
- Used high and low method to differentiate the elements of costs.
- Will be used in performance reports to determine the performance of the company.
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