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Accounting - Variance Analysis, Coursework

The budgeting process may be approached differently in various firms. Top-down budgeting has its inception with directives from senior management who prepare the budget for staff and assess performance based on objectives established at higher levels. Any additional compensation received occurs because of achieving budgeted targets imposed by others. In contrast, bottom-up budgeting reflects the predictions of cost, revenue, profit, and investment center managers proposed and approved by senior managers. Incentives are negotiated by managers proposing the budget rather than imposed by higher-level executives. 1 Define a flexible budget and describe its use. Under which budgeting approach would flexible budgets more likely be used, and why? 2 What might be the most important consideration in investigating budget variances? 3 What are the potential benefits of monitoring direct cost variances? 4 What are the potential benefits of monitoring overhead variances? 5 Should managers be commended for achieving favorable overhead spending, efficiency, and production volume variances? Rationalize your response. In addition to the advertising examples, include two or three other outside references to support your research and conclusions. In your analysis, include the following: An introduction Requirements 1 – 5 Conclusion Requirements: APA FORMAT 3-4 pages in length (required number of pages does not include the title page and the reference page) Include at least 2-3 outside sources
The budgeting process may be approached differently in various firms. Top-down budgeting has its inception with directives from senior management who prepare the budget for staff and assess performance based on objectives established at higher levels. Any additional compensation received occurs because of achieving budgeted targets imposed by others.
Assignment ID
330016
Discipline
CREATED ON
24 November 2017
COMPLETED ON
26 November 2017
Price
$40
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