building of nuclear weapons
total master-budget variances
01
A budget "variance" is the difference between planned and actual performance.
At the start of fiscal period every organisation prepares budgets for the coming period and then use the same estimated budget at the end of fiscal year to evaluate the performence in the fiscal year. When actuall amount for any activity is utilized less then the budgeted amount estimated for the same activity at the start of the fiscal year and perform the same activity accurately as estimated at start of period with less amount then it is called favourable variance and vice versa.
A supplementary estimate refer to the additional or extra estimate. A revised estimate is the difference between the former budget estimates and the actual expenditure, which is usually presented in the next budget.
Inflation
Fixed or Static buget is for a particular activity level. Flexible budget is for a range of activity level. Differentiate between Fixed and Flexible budget ? Needs a complete answer.
Here are the differences between the two: Flexible Budget-A flexible budget is a budget that adjusts or flexes for changes in the volume of activity. The flexible budget is more sophisticated and useful than a static budget, which remains at one amount regardless of the volume of activity. Rolling Budget-Method in which a budget established at the beginning of an accounting period is continually amended to reflect variances that arise due to changing circumstances. Hope this helps!
a budget which is prepared for one level of activity is:
The Production Budget for Paranormal Activity 4 was $5,000,000.
The Production Budget for Paranormal Activity 2 was $3,000,000.
The budget that is prepared for one level of activity is known as a static budget. A static budget is often one of many other budgets that are created off of a master budget.
The Production Budget for Back to the Future Part III was $40,000,000.
The main difference is, budget is a planned activity to meet the targets whereas financial report is the one which shows the health/wealth of the organization.
SALES
Rigid Budget: It does not change with actual volume of activity achieved. Thus it is known as a Rigid or inflexible budget.
The activity based budgeting will give a percentage of the budget to the sections that are the most used. Traditional just splits it all up evenly.