advatage and dishadvatage of adopting globa; convergence of accounting systems

Essay by nikunjUniversity, Bachelor's August 2014

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Q-1 Outline how flexible budgeting could make Truly Epicurean branches financial performance gaps easier to identify.

Ans : Flexible budget can be prepared for the actual level of activity and can be for any activity level in the relevant range. A flexible budget is an estimate of what revenues and costs should have been, given the actual level of activity for the period. When flexible budget is used in performance evaluation, actual costs are compared to what costs should have been for the actual level of activity during the period rater than to the static budget. Some of the key things about static budget and flexible budget.

Static budget can be used for single level of activity while flexible budget can be used for actual level of activity.

Static budget is a preplanned & prepared at the beginning of the year while flexible budget is prepared at the end of the actual period.

Static budget cannot be changed for current customer needs, while on the other side flexible budget can be easily changed as per customer needs.

Static budget mislead the management in taking key management decision while flexible budget is very useful for management to improve the performance and evaluation.

Q-4 Explain how the Truly Epicurean chain could use " Benchmarking" to improve performance.

Ans: Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries. Dimensions typically measured are quality, time and cost. In the process of benchmarking, management identifies the best firms in their industry, or in another industry where similar processes exist, and compare the results and processes of those studied to one's own results and processes. In this way, they learn how well the targets perform and, more importantly, the business processes that explain...