1. Companies divide flexible budget variances for direct materials and direct labor into price and efficiency (quantity) variances.

2. A flexible budget may be used to establish a standard factory overhead rate.

3. A flexible budget is also called a variable budget because it shows how revenues and costs vary with volume throughout the budget range.

4. Finally, the application of breakeven analysis as a flexible budget device is introduced.

5. Accountants prepare a flexible budget to divide static budget variances into two broad categories: sales volume variances and flexible budget variances.

6. Activity-Based Flexible Budget which is the integration of cost budget and Activity-Based Cost (ABC), will build a kind of new system of cost management decision.

7. A flexible budget may also aid in reporting actual costs and variations from standards.

8. But if you are looking for the very latest in exotic technology and have a flexible budget, prepare to get excited.

9. The first chapter reviews and summarizes the theory of business financial system, sketches the principle of flexible budget and its preparing methods.

10. Sales volume variances are differences between amounts in the flexible budget and amounts in the master budget.

11. According to budget preparative method, the enterprise budget can also be divided into fixed budget, flexible budget, probabilistic budget, rolling budget , and zero-based budget, etc.

12. Flexible budget variances are differences between actual results and flexible budget amounts.