ACC 350 Week 8 Assignment 1, Start Up Budgeting
Since flexible budget is more sophisticated, useful and provides deeper insight into business operations. The clothing company planned to use a flexible budget pairing it with the static budget to adjust for changes in the volume of activity. The variances generated under flexible budget are much more relevant since both the budgeted and actual expenses are based on the same activity measure. This means that the variations will likely be less and will also be highly actionable for the company’s managers to act on them efficiently. It will also be very easy to find how the variances happened. The budget is going to be an ever-evolving process, so reviewing the budget is a foundation for this new clothing company. By taking the time to review and monitor the progress, making adjustments as soon as they’re ….., the company more likely will achieve its goals of being competitive in the fast fashion industry………….