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BEC Budget income statement
Why does BEC budget reveune used budget number of students (total 6,900) for reveune but the cost of budget used actual number of students (total 7,200) for the budget cost.
I thought that the cost of budget is also used number of students 6,900.Thank!
MatThink about variances in ordinary manufacturing companies.
The sales variance is based on the difference between budgeted sales and actual sales. However, variable cost variances are flexed. It would be wrong to say that the tuition materials actual cost of 741,600 (for 7,200) students should be compared to the cost budget based on 6,900 students.W should be saying that given there were 7,200 students what should the materials have cost.
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