What is the difference between a static budget and a flexible budget?
How does management use these budgets to gain insight into performance?
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What are the key business events that trigger the need for flexible budget?
Is it always sales volume above or below expected?
Can inflation or excessive costs lead to flexible budget if volume is not changed?
Describe the variable overhead variances.
How does a manager plan for these variances?
Compare the variable overhead variance to the fixed overhead variance.
What are threats to inventory within the production cycle (both threats to physical inventory and the data related to inventory)?
What specific controls do AIS offer to help prevent or at least detect these threats?
What is a payroll master file?
Describe the types of errors that may occur in the master file and how they get there.
| How would you design payroll procedures to help prevent them?
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