I need you to respond to the original discussion question on one page and respond to this student on a separate page. Thanks! PLEASE MAKE TWO SEPARATE POST!!!

This is the original discussion question!

  • Please Respond to the following questions.
  • What are the costs versus benefits when a manufacturing and retail business implements a flexible budget for the first 3 quarters of the fiscal year? What is the major distinction between a static budget and a flexible budget? Illustrate the differences using a real-world example and provide an academic reference to support your response. 

This is the students POST!

Hello Professor and classmates, flexible budget summarizes income and expenditures of different types of sales capacity over a certain period of time. It differentiate variable costs and fixed costs. It is prepared after an overview and calculation of all expenditures with fixed costs, variable, semi-variable cost since its value depends on it accuracy. 

The different between static budget and flexible budget is that static budget is prepared for one level of activity but flexible budget is adjusted for different types of activity over a certain period of time. In the manufacturing industry, static budget serves as the planning and predicting tool to aid accountants and management the formulation of budget at a specific period, ie, the beginning of the year, quarterly, six months or annually. Flexible budget in most cases is very helpful to the manufacturing or retail business although the budget varies depending on what is on ground.  

For example, suppose Strayer University has a monthly budget of $5,000,000 for the sale of laptops, if the request for the laptop doubled increase for the first quarter of the year to $10,000,000 the budget has to be adjusted. This means that Strayer University must not continue on the old budget because it has reduced. It will be very challenging to evaluate the budget base on its original amount which was $5,000,000 because the income were predicted using the old budget.
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