Other Flashcards
1
Q
Be for sales mixes
A
Specific and general fc divided by weighted contribution
X ratio or weighted sp to get be sales rev.
Or
Divided by contribution in a batch to get nr of batches. Times by each units in batches to get be units
Or weighted sp to get be rev
2
Q
Criticisms of budgeting
A
Time consuming and costly
Barrier to change and flexibility
Not strategically focused
Add little value considering time required to prepare them
Concentrate on cost reduction and not value creation
Encourage gaming
Developed and updated to infrequently
Based on unsupported assumptions and guesses
Reinforce departmental barriers
Make people feel undervalued.
