This paper concentrates on the primary theme of Prepare a flexible budget for next year for the company of your choice. The budget needs to be realistic and based on corporate and economic trends. in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 79. For more details and full access to the paper, please refer to the site.
Preparing a Flexible budget: Home Depot
Prepare a flexible budget for next year for the company of your choice. The budget needs to be realistic and based on corporate and economic trends.
Set up the flexible budget at three levels for the income statement. Companies prepare budgets based on absorption and/or variable costing. Due to lack of information, we`re limiting our budgeting to the absorption approach. You still need to estimate cost behavior based on trends.
Information to consider in determining the three levels.
What is the growth rate in sales for the past three years?
What is the current growth rate in the economy?
How are the competitiors doing?
Current interest rates and tax burdens.