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Capital Budgeting

Read the below articles.

https://saylordotorg.github.io/text_managerial-accounting/s12-how-is-capital-budgeting-used-.html

https://saylordotorg.github.io/text_managerial-accounting/s13-how-are-operating-budgets-crea.html

static-budget analysis

Write an analytical summary of your learning outcomes :

  • As a manager, discuss how you would use or have used the concepts.
  • Why might managers find a flexible-budget analysis more informative than static-budget analysis?
  • How might a manager gain insight into the causes of flexible-budget variances for direct materials, labour, and overhead?

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Provide at least one numerical example to support your thoughts.

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