Distinguish Between Static and Flexible Budgets

question 155

Essay

Distinguish between static and flexible budgets.Give an example of how flexible budgets can be used.

Describe the effects of purchasing terms (FOB destination) on inventory accounting.

Apply perpetual inventory system calculations to determine cost of merchandise sold and ending inventory.

Understand the necessity of accurate inventory recording and its impact on financial reporting.

Understand and perform calculations for inventory turnover, including industry comparisons.