XYZ Co. It is preparing the 2018 budget. Budgeted unit selling price is SR 60 and total
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Question:
XYZ Co. It is preparing the 2018 budget.
Budgeted unit selling price is SR 60 and total fixed costs for 2018 are estimated to be SR 1,500,000. Variable costs are budgeted at 20 SR/unit.
Necessary
You work in the accounting department of XYZ, preparing a flexible budget for volume levels of 120,000, 130,000 and 140,000 units.
A trainee at XYZ Co asked you to explain the difference between static and flexible budgets and the reasons for using each.
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