Creating Operating Budgets

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How Are Operating Budgets Created? And How Do Managers Evaluate Performance Using Cost Variance Analysis?

Write an analytical summary: (150 words)

1. How Are Operating Budgets Created? And How Do Managers Evaluate Performance Using Cost Variance Analysis?

In addition to your analytical summary, address the following:

1. As a manager, discuss how operating Budgets Created? And How Do Managers Evaluate Performance Using Cost Variance Analysis? (150 words)
2. Why might managers find a flexible-budget analysis more informative than static-budget analysis? (150 words)
3. How might a manager gain insight into the causes of flexible-budget variances for direct materials, labor, and overhead? Provide at least one numerical example to support your thoughts. (150 words)

Please use Chapter 9 and chapter 10 as reference: https://saylordotorg.github.io/text_managerial-accounting/index.html

Sample Solution

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