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Synoptic Assessment - Foundation
Why are variances calculated on the flexed budget, rather than the original budget?
belle_anna
Registered
Posts:
1
April 2018
edited April 2018
in
Synoptic Assessment - Foundation
I know how to work out the flexed budget and the variance I just don’t know why we actually need to do it??
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badhombre
Milton Keynes
AAT Student, AATQB, AAT Licensed Bookkeeper
Posts:
21
April 2018
because the flexed budget allows a direct comparison with the actual revenue/ costs whereas the static budget was drafted on a hypothetical vol of product produced (in a manufacturing context)
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