Budget and decision making

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The purpose of this assignment is to evaluate a static budget and prepare and evaluate a flexible budget. You are required to calculate and analyze variances and discuss how variances are critical to managerial decision making.

Flexible Budget

  • The actual column should agree with the actual column listed with the static budget.Your responsibility is to prepare the flexible budget (column H), compute a variance (column J), and state whether the variance is favorable or unfavorable (column L).
  • The actual column should agree with the actual column listed with the static budget.Your responsibility is to prepare the flexible budget (column H), compute a variance (column J), and state whether the variance is favorable or unfavorable (column L).
  • The actual column should agree with the actual column listed with the static budget.Your responsibility is to prepare the flexible budget (column H), compute a variance (column J), and state whether the variance is favorable or unfavorable (column L).
  • The actual column should agree with the actual column listed with the static budget.Your responsibility is to prepare the flexible budget (column H), compute a variance (column J), and state whether the variance is favorable or unfavorable (column L).
      • For additional information regarding flexible budgets please review the following.

https://www.accountingcoach.com/blog/flexible-budg…

https://www.accountingtools.com/articles/what-is-a…


Resources: Excel File. Tutorial help on Excel® can be found on the Microsoft® Office website. There are also additional tutorials via the internet.

Instructions:

1. Download the Excel file posted to the week 6 projects thread.

2. Review the static budget.

3. Prepare a flexible budget.

4. Complete the questions tab via answering the questions incorporated therein.

Submit the completed Excel file to the assignments tab.


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