1.What is a static budget? What is a flexible budget? Which is more useful, and
ID: 2630874 • Letter: 1
Question
1.What is a static budget? What is a flexible budget? Which is more useful, and why?
2. Consider your current position, or consider a job that you might like to have in the future. Describe how budgeting might impact you in that role.
3 What is the difference between a value-added and a non-value-added cost? Give an example of each. Participate in follow-up discussions by reviewing your classmates' posts and expanding upon what they have written regarding value-added and non-value-added costs.
4. What is the product life cycle? How does it impact pricing decisions?
Explanation / Answer
A static budget is generally used as a projection tool for estimating business expenses within a given period of time. Discrepancies resulting from the fluctuating cost of raw materials or initial budgeting errors appear on a static budget as static budget variance. When accounting for the end of a production cycle's actual expenses, the static budget variance needs to be combined with the actual initial static budget in order to achieve accurate financial reporting. For the sake of simplicity, it can help to think of a static budget as a projection budget.
Flexible Budgets Explained
Flexible budgets work well as a performance evaluation tool in conjunction with a static budget and are basically a comprehensive accounting of the static budget's cost variance. Flexible budget expenditures can be stymied by offering employee performance incentives directly relating to staying on the static budget. A basic rule of thumb about flexible budgets is that they are a business cycle analysis tool and cannot be compiled before the end of the business cycle itself. Analyzing the flexible budget at the end of the business cycle allows management to adjust the next business cycle's static budget forecasts to match the changing circumstances of operating costs. In the simplest terms, a flexible budget can be described as an end of period actual accounting of expenses on which to form a comparison with the original static budget.
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realized a few years ago that I'm very focused when I'm working with many details; I seem to work well with organizing, indexing, finding discrepancies, etc. But I know I must pull back as well to see the whole picture and not just parts of a situation. So that's what I've been practicing for the last couple years: being able to see the details without losing the details.
Although you will focus on your strengths and what you can contribute (give/ do) for the company, don't be surprised if the interviewer asks about flaws, faults, mistakes, weaknesses, and even bad behavior. If you made a mistake in another job and can show how that event taught you a positive skill, use the example, making sure to clearly tell how you are a better employee after making that mistake.
"Contributions"
Describe specific examples of how effective you have been in your other positions, change you have implemented, and goals you have achieved. Talk about the depth and breadth of related experience that you have. Think of it as how you would apply your strength and how it would apply to better the operation of the company.
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The central difference between a value-added cost and a non-value-added cost is that a value-added cost is money spent that increases a customer
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