What are Flexible Budget and Flexible Budget Variance?
A budget is a future-oriented strategy. Therefore, budgets are planning tools, and they are often produced prior to the beginning of the budgeted period. However, comparing the budget to the actual results offers useful performance information. Budgets are, therefore, both planning and performance evaluation instruments. Typically, the single most significant budget input is a measure […]
What are the Fixed Costs in Management Accounting?
Fixed costs are expenses that remain constant or unchanged regardless of changes in the level of production or sales within a relevant range. They are often time-related, meaning they are incurred over a specific period, such as a month or a year. The cost of rent and leasing space, wages, energy bills, insurance premiums, and […]