acct wk7 conf posts 494404

Accounting Conference – Flexible budgets/Total materials variance —————————————————————————————————————————————— Student’s posts: First post: The great thing about budgetary control, especially in a high profile business, is that it allows them to maximize their profits and allow their staff to maximize their resources.  Although the use static budget reports may suffice in most small businesses that only utilize only one level of activity, flexible budget reports are much more applicatble to real world business senarios that consist of multiple sources of revenue and have many levels of costs.  As most businesses utilize several different levels of activity (lighting, cooks, maid services, doormen etc.) the usefullness of this report allows us to better understand the overall performance of the management staff and their capabilities as well as their inabilities which are represented in a mathematical manner.   Second post:  Whether static or flexible budget reports are used, the importance of using these tools to seek out the strengths and weaknesses of department management are essentiall to providing consumers with what they want while maximizing revenue.  In addition to budget reports, Managment by exception is the link between actual and planned objectives, and simply put, sifts out any potential problem areas.  Like many business there is always that slight chance of mis-reporting revenues to make your sales look more appealing to stock holders.  In turn, Responsibility Accounting takes into incorporates all accumulating and reporting costs and ensures the managers performance is up to par based on budget data produced.  Based on personnal experience in the matter, a successfull management team relies significantly on their employees to ensure proper order and quality control is being implimented in every stage of production.  Without this, the amount of…