from the conferences organized by TANGER Ltd. provisional website
This article focuses on the flexible variable cost budgeting of metallurgical production and its usage for valuation of actual variable cost. In case that this flexible budget is not available, it is not possible to identify the main influences that affect the total differences between the planned and actual values of variable cost. These main influences are: influence of production volume, influence of product mix, influence of consumption of variable inputs and influence of price of variable inputs. This article defines the procedure how to calculate the flexible budget of overhead variable cost based on its average planned consumption and prices. Part of this article is also a definition of the calculation of main influences that cause differences between the budget of variable cost and its actual value.Keywords: Variable Cost; Flexible Budgeting; Metallurgical Production; Product Mix; Company Plans; BOM.
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