Flexible-Budget Variance and Sales-Volume Variance Homework Help

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Flexible Budget Variance and Sales Volume Variance Help for Students at Myhomeworkhelp.Com

Microeconomics is an important yet tough part of studies for economics majors. Topics related to budgeting and its analysis trouble them to no end.

Meaning of flexible budget variance

A flexible budget is one designed to incorporate changes in accordance with changing business conditions. It indicates the difference between actual and expected costs based on a number of units sold. Expenses are stated as percentages which help in automatically calculating figures based on sales. Variations occur when there are differences between actual and anticipated figures. Flexible-budget variance and sales-volume variance homework helpof myhomeworkhelp.com assist students in learning these concepts.

Uses of flexible budget variances

As compared to fixed budgets, flexible ones are more useful for going concerns.

  • As they are adjusted based on actual results, firms can make better comparisons. Flexible budgets show what has happened and what should have happened.
  • It helps to improve efficiency by helping firms take corrective actions in case of unfavorable
  • Flexible budgets are useful in identifying problem areas as they show differences in each section separately.

Au understanding of these factors will be helpful for getting a flexible-budget variance and sales-volume variance assignment help.

What are sales volume variances?

Sales volume variance is the difference between the projected sale volume and actual sale volume. This is multiplied by the budgeted price per unit to get a number of sales volume variation. Here, the focus is not on costs, but on the volume of sale. As changes in sales volume have a definite impact on the future of a firm, it is extremely important to monitor it. For thorough knowledge, students can go for flexible-budget variance and sales-volume variance homework help.

Causes for variation in sale volume

A number of factors affect sales quantity. They could be:

  • New products:

When a company introduces new products on the lines of existing products, it may lead to a decrease in sales volume of old products. Customers are always looking out for change.

  • Competitors:

A new product introduced by competitors or a new firm entering market may also have a negative impact on sale of products.

  • Product flaws:

Sometimes, there may be flaws in a particular range of products. Technical fault may occur in automobiles. When this is known to the public, they avoid the entire range.

  • Regulations:

If a major portion of sales is from exports, governmental regulatory changes may affect sales.

A good flexible-budget variance and sales-volume variance assignment help can help students in learning these clearly.

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