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In addition to the textbook exercises please respond to the following related to your final work in the table above. Do you get a positive or negative net effect? Why?

After the computation above, it is viewed and observed  that revenue exceeds over expenses produced positive number $150,000 although during the period the company’s  revenue and expenses is produced negative results amounting ($1,550,000) and ($1,700,000) respectively but it hasn’t make any impact on overall Excess of revenue over expenses,

Please respond to the following questions (not included in your textbook, however relevant to Chapters 15 and 16).

In preparation for developing your team business plan, identify the following (you need to do this at this time as an individual not with your team). Note: This information will not necessarily be used in your business plan but will help you to begin to apply this content and increase your understanding:

a.      Identify the categories that would be included in your budget. Identify if expenses are fixed or variable.

I include the category of expenses in my budget like in the form of variable expenses, fixed expenses, administrative expenses and selling expenses. I include both variable and fixed cost like depreciation, rent, transportation, wages, insurance, etc.

b.      Which is best for you a static or flexible budget?
The major theme of flexible budget is to perform in accordance with the level of activity and provide advantageous tool for the management in order to evaluate the performance of the company.

Moreover, when any company valuates its performance by applying static budget then it is very acute chance to raise the production and level of sales because increment in sales volume tends to raise the cost as a result company projects negative variances. The shining and highlighting perspective of flexible budget is to provide remedy of this particular process.

c.       What type of capital expenditures might you include? I include some capital expenditures which are stated below:

·         ECG machine

·         X-Ray machine

·         Other major medical equipment

·         Land

 

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