BBA 2301 Principles of Accounting II Static Budget Discussion

Our last unit focused on the fact that budgets are designed to plan our operations. Now, you will learn that budgets are also designed to control and monitor our actual results as compared to our budgeted amounts. Standard costing is an important part of the budget preparation.

Budgets help organizations to develop strategies, plan their operations, and then control and monitor their actual results against their budgets.

How can information you learned in this course be applied to your life and/or work to increase your future success?

Optional (best if posted separately): Select a publicly-held company and discuss, in detail, whether it would be more advantageous for them to prepare a flexible budget as opposed to a static budget.

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