Assume You Have Been Assigned to a Team Responsible for Using

question 79

Essay

Assume you have been assigned to a team responsible for using the flexible budget to assist in determining managers' bonuses.When you approach the production manager about some variances,he says,"I don't know why your team can't just use the budget we developed at the beginning of the year.It was based on last year's actual numbers which seems reasonable.I don't understand this 'flexible budget' stuff.When I compare my actual results with our beginning of the year budget I have beat the budget,so that should be sufficient.That will save us all a lot of time and effort." Explain to the sales manager why a flexible budget is better than a static budget and its use in evaluating performance.

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Definitions:

Jointed Appendages

Parts extending from the body of an organism (such as legs, antennae, or wings) that have joints, allowing for movement.

Ventral Nerve Cord

A major nerve cord found in the ventral (front) side of invertebrates, such as insects and worms, which functions in signal transmission.

Phylogenetic Relationship

Phylogenetic Relationship refers to the evolutionary connections among different species or organisms, showing how closely related they are through a phylogenetic tree or cladogram.

Trypanosome

A genus of unicellular parasitic flagellate protozoa, some species of which cause diseases such as sleeping sickness in humans and animals.