Master Budgeting And `Flexible Budgets

Master Budgeting And `Flexible Budgets

Please answer the questions below completely and explain your answers.

  1. Explain the components of a master budget and examine how managers use a master budget in decision making.
  2. Explain and examine the process of preparing one of the following budgets: (a) production budget; (b) direct materials budget; or (c) direct labor budget.
  3. Compare and contrast between a flexible budget and a static planning budget.
  4. Distinguish between revenue variance and spending variance.  Give examples of each variance.

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