Problem
Compare and contrast job-order and process costing systems. How can events in a job-order costing system affect financial statements? How can events in a process costing system affect financial statements? Provide specific examples for each type.
Planning, Coordinating, and Controlling Business Operations
Budgeting is a tool used by management for performing the functions of planning, coordinating, and controlling operations of a business. Our textbook, Managing Accounting Concepts, describes 2 main types of budgeting: static budgets and flexible budgets.
Differentiate between the 2 types of budgets and include the following in your response:
a) Provide an example of the type of business or company that would benefit from using a flexible budget.
b) Provide support for your business selection and include the advantage for using a flexible budget over a static budget.