7 4 Prepare Flexible Budgets Principles of Accounting, Volume 2: Managerial Accounting
Thus, the variable portion of the cost of goods sold is 30% of revenues. Once the budget period has been completed, ABC finds that sales were actually $9 million. If it used a flexible budget, the fixed portion of the cost of goods sold would still be $1 million, but the variable portion would drop […]
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