a. .Discussion: Balanced Scorecards
– Why does the balanced scored card include financial perform measures as well as measures
of how well internal processes are doing? b. Select 1 and write 1 -1/2 page EXERCISE: 1 Perform an Internet search using the term:
– Flexible budgets – Locate an Article (less than 1 year old) – Write a brief 3 – 5 paragraph. Flexible Budget – it include formulas that adjust expenses based on changes in actual revenue
or other activities. It calculates different expenditure levels for variable costs, depending upon
changes in actual revenue.
Advantages:
a. It is a good tool for evaluating the performance of managers.
b. It is planning tool
Disadvantages
a. Many cost are not fully variable, instead having affixed cost component that must be
derived and then included in the flex budget formula.
b. Great deal of time are spent developing step costs, which is more time than the typical
accounting staff has available, especially when the midst of creating the mmore