Budgeted Versus Actual Rates Homework Help

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Economics Students Get Insight into the Differences in Budgeted Versus Actual Rates

Budget is a major part of financial planning of all firms. Right from framing of budgets to its analysis, economics students need to be well versed with every aspect of it.

Need for budgets

While you are searching forbudgeted versus actual rates homework help, let us,myhomeworkhelp.com,throw some light into the need for a solid budget.

  • Budgets are useful in proper allocation and usage of available resources. Without this, firms will not have the correct idea about what to use and how much to use.
  • It helps firms in decision-making process by providing guidelines for future.
  • It is helpful in fixing responsibility in case of unfavourable results.
  • Remedial actions can be taken before things go out of control.

Why actual costs exceed budgets

As part of studies, students get questions regarding budgeted rates. Budgeted versus actual rates assignment help can assist them in such cases. There are several reasons for costs going above budgets.

  • Market fluctuations:

Unexpected changes in prices of raw materials may lead to costs going beyond budget. This cannot be controlled by individual firms.

  • Improper estimates:

If the budgeting process was done on the basis of faulty estimates, the actuals are bound to differ. Proper care should be given to drafting budgets.

  • Competitors:

When new entrants enter market, there will be public sentiments in their favour. To counter this, firm may need to increase overhead costs on advertising.

  • Regulations:

New regulations coming into force may cause price of some goods or services go up.

When cost is within budget

This is surely a favourable indication for firms. But they need to take care to maintain the momentum.

  • Reductions in costs may be due to windfall events which are not likely to repeat. So it is not proper to expect the same reduction in future also.
  • Care should be taken that departments do not relax in their initiative to keep costs under control.
  • Where costs are found to be less than budget, analyse reasons to see whether similar measures can be adopted in other cases.

Knowing these can be helpful before proceeding to get budgeted versus actual rates homework help.

Why students stagger

Budgeting and analysis do not have many takers in economics field. It is generally perceived as difficult to learn.

  • Lots of theories are involved in budgeting study. At some point, students lose interest.
  • Practical problems related to costing and budgeting are detested by most. It demands lots of knowledge and practice. Here students are seen approaching budgeted versus actual rates assignment help.

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