Question Description
I need an explanation for this Accounting question to help me study.
"Flexible Budgets"
- Evaluate the impact to a business when compensation, such as sales commissions and bonuses, are tied to achieving budgeted expectations. Suggest two (2) actions that management can take in order to prevent employees from manipulating results.
Explanation & Answer
hey buddy, there you go. kindly check it out. is it satisfactory?
Flexible Budget- this refers to a budget that can be changed in accordance with the change of the business
activities. It is more useful than the static budget, moreover, it does not dilute the value, of the budget
process in the organization which is important to make.\
Flexible budget has some importance, they include:
•
Flexible budgets help in comparisons between budgeted and actual cost.
•
It helps to compare between budget and the actua...