Chapter 6: Flexible budgeting Flashcards
1
Q
Static budget
A
Budget made prior to the start of a period based on a projected level of output
2
Q
Static Budget Variance
A
The difference between any line item in the original (static) budget and the corresponding line item from the statement of actual results
3
Q
Flexible budget
A
Prepared after a period. Adjusts the static budget for the actual level of output. Posits what the budget should have looked like for the actual production level
4
Q
Flexible budget variance
A
The difference between any line item in the flexible budget and the corresponding line item from the statement of actual results
5
Q
Pro forma analysis
A
Developing alternative budgets for various anticipated levels of output?
