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Fixed and flexible budgets

Unit 7: Cost Accounting for Planning and ControlTopic 7 of 7
Browse the Cost and Management Accounting syllabus

Cost and Management Accounting

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What the syllabus expects

  • Concepts and importance
  • Differences
  • Overhead control at different activity levels
  • Budget allowance for actual activity attained

Fixed and flexible budgets

Bachelor of Business Studies (BBS) — Second Year

Subject: Cost and Management Accounting (MGT 212)

Unit 7: Cost Accounting for Planning and Control

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

  • Explain the scope and key elements of fixed and flexible budgets.
  • Prepare the relevant cost records or calculations and interpret their use in managerial planning and control.

Curriculum Scope

  • Concepts and importance
  • Differences
  • Overhead control at different activity levels
  • Budget allowance for actual activity attained

Detailed Microsyllabus

  1. Fixed and flexible budgets

    1. Budgets prepared for one activity level.
    2. Budgets adjusted to changing activity.
    3. Differences in planning and evaluation uses.

  2. Overhead control

    1. Separate fixed, variable and relevant mixed costs.
    2. Calculate the allowance for actual activity attained.
    3. Compare actual cost with a comparable flexible allowance.

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 31-34.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.