ACC 543B – Compt 2

Competency Assessment Title: Flexible Budget

Assignment Directions

Review the scenario and complete the activity below. This scenario can also be found in the “Problems – Series A” section 8-19A of Ch. 8,

“Performance Evaluation,” of Fundamental Managerial Accounting Concepts.

Use Excel®—showing all work and formulas—to complete the following:

Prepare a

flexible budget.

Compute the sales volume variance and the variable cost volume variances based on a comparison between the master budget and the

flexible budget.

Compute flexible budget variances by comparing the flexible budget with the actual

results.

Mr. Snow was extremely upset with the budget deficit. He immediately called you, the treasurer, to complain about the budget variance for the

meal cost. He told you that the added dessert caused the meal cost to be $4,810 ($25,110 – $20,300) over budget. He added, “I could expect a

couple hundred dollars one way or the other, but several thousand is totally unacceptable. At the next budget meeting of the budget committee, I

want you to explain what happened.”

Create a presentation for the budget committee meeting showing your findings and recommendations from your computations.

Complete the following in your presentation:

Summarize the results of the sales volume and variable cost volume variances computations based on the comparison between the

master budget and the flexible budget.

Summarize the results of the flexible budget variances computations based on the comparison between the flexible budget and the actual

results.

Justify the favorable or unfavorable budget variances.

Since this is a not-for-profit organization, address why anyone should be concerned with meeting the budget.

Make recommendations for what can be done differently to stay on budget for future luncheons. Provide specific examples to support your

recommendations.

Include detailed speaker notes.

ACCCB/543 Competency 2 Assessment and Rubric
Course Title: Managerial Accounting and Legal Aspects of Business
Competency Assessment Title: Flexible Budget
Assignment Directions
Review the scenario and complete the activity below. This scenario can also be found in the “Problems – Series A” section 8-19A of Ch. 8,
“Performance Evaluation,” of Fundamental Managerial Accounting Concepts.
Use Excel®—showing all work and formulas—to complete the following:
• Prepare a flexible budget.
• Compute the sales volume variance and the variable cost volume variances based on a comparison between the master budget and the
flexible budget.
• Compute flexible budget variances by comparing the flexible budget with the actual results.

Mr. Snow was extremely upset with the budget deficit. He immediately called you, the treasurer, to complain about the budget variance for the

meal cost. He told you that the added dessert caused the meal cost to be $4,810 ($25,110 – $20,300) over budget. He added, “I could expect a
couple hundred dollars one way or the other, but several thousand is totally unacceptable. At the next budget meeting of the budget committee, I
want you to explain what happened.”
Create a 6- to 8-slide presentation for the budget committee meeting showing your findings and recommendations from your computations.
Complete the following in your presentation:
• Summarize the results of the sales volume and variable cost volume variances computations based on the comparison between the

master budget and the flexible budget.

• Summarize the results of the flexible budget variances computations based on the comparison between the flexible budget and the actual

results.

• Justify the favorable or unfavorable budget variances.
• Since this is a not-for-profit organization, address why anyone should be concerned with meeting the budget.
• Make recommendations for what can be done differently to stay on budget for future luncheons. Provide specific examples to support your
recommendations.
• Include detailed speaker notes.
Copyright 2021 by University of Phoenix. All rights reserved.
ACCCB/543 Competency 2 Rubric
Page 2 of 3
Competency Assessment Rubric
Assignment/Performance
Criteria
Mastery
100%
Meets Expectations
85%
Not Met
0%
1. Flexible Budget
(weight 15%)
Created a flexible budget in
Excel, showing all work and
formulas, and all calculations
are correct.
Created a flexible budget in
Excel, showing most work
and formulas, and most
calculations are correct.
Created a flexible budget in Excel, showing
minimal work and formulas, and some
calculations are correct or did not create a flexible
budget.
2. Sales Volume and
Cost Volume Variances
(weight 15%)
In Excel, all components of
the computations of the sales
volume and variable cost
volume variances based on a
comparison between the
master budget and the
flexible budget were correct.
In Excel, most components of
the computations of the sales
volume and variable cost
volume variances based on a
comparison between the
master budget and the
flexible budget were correct.
In Excel, some components of the computations
of the sales volume and variable cost volume
variances based on a comparison between the
master budget and the flexible budget were
correct did not compute the sales volume and
variable cost volume variances based on a
comparison between the master budget and the
flexible budget.
3. Flexible Budget
Variance
(weight 15%)
In Excel, computation of
flexible budget variances
based on comparison
between the flexible budget
with the actual results was
completely correct.
In Excel, computation of
flexible budget variances
based on comparison
between the flexible budget
with the actual results was
mostly correct.
In Excel, computation of flexible budget variances
based on comparison between the flexible budget
with the actual results was somewhat correct or
did not compute flexible budget variances based
on comparison between the flexible budget with
the actual results.
4. Results: Sales Volume
and Variable Cost
Volume Variances
(weight 10%)
Thoroughly summarized the
results of the sales volume
and variable cost volume
variances computations
based on a comparison
between the master budget
and flexible budget from a
creative and innovative
perspective.
Partially summarized the
results of the sales volume
and variable cost volume
variances computations
based on a comparison
between the master budget
and flexible budget.
Narrowly summarized the results of the sales
volume and variable cost volume variances
computations based on a comparison between
the master budget and flexible budget or did not
summarize the results of the sales volume and
variable cost volume variances computations
based on a comparison between the master
budget and flexible budget.
Copyright 2021 by University of Phoenix. All rights reserved.
ACCCB/543 Competency 2 Rubric
Page 3 of 3
Assignment/Performance
Criteria
Mastery
100%
Meets Expectations
85%
Not Met
0%
5. Results: Flexible
Budget Variances
(weight 10%)
Thoroughly summarized the
results of the flexible budget
variances computations
based on a comparison
between the flexible budget
and actual results from a
creative and innovative
perspective.
Partially summarized the
results of the flexible budget
variances computations
based on a comparison
between the flexible budget
and actual results.
Narrowly summarized the results of the flexible
budget variances computations based on a
comparison between the flexible budget and
actual results or did not summarize the results of
the flexible budget variances computations based
on a comparison between the flexible budget and
actual result.
6. Justified Budget
Variances
(weight 10%)
Thoroughly justified the
favorable or unfavorable
budget variances from a
creative and innovative
perspective.
Partially justified the favorable
or unfavorable budget
variances.
Narrowly justified the favorable or unfavorable
budget variances or did not justify the favorable or
unfavorable budget variances.
7. Meeting the Budget
(weight 10%)
Thoroughly discussed why
someone should be
concerned with a not-for-profit
organization meeting the
budget from a creative and
innovative perspective.
Partially discussed why
someone should be
concerned with a not-for-profit
organization meeting the
budget.
Narrowly discussed why someone should be
concerned with a not-for-profit organization
meeting the budget or did not discuss why
someone should be concerned with a not-for-profit
organization meeting the budget.
8. Recommendations
(weight 15%)
Provided thorough, creative,
and innovative
recommendations for staying
on and supported all
recommendations with
examples.
Provided partial
recommendations for staying
on budget and supported
most recommendations with
examples.
Provided narrow recommendations for staying on
budget and supported some recommendations
with examples or did not provide
recommendations for staying on budget.
Copyright 2021 by University of Phoenix. All rights reserved.