Jennifer Arevalo-
What is a static budget?
is a budget prepared for one sales level. Which is usually forecasted sales for the upcoming year.
-
What is a flexible budget?
is a budget for various sales levels usually are actual sales during the year.
-
What is management by exception?
is the concept that managers should only spend their time explaining significantly large favorable or unfavorable variances.
-
What does a favorable revenue variance mean?
That means that actual sales revenue is greater than what was anticipated.
-
What does an unfavorable spending variance mean?
When we spent more on perks and products, paying employees than we planned to spend throughout the year. Spent more than we thought.
