While the Sales Manager May Be Ecstatic to Learn He

Essay

While the sales manager may be ecstatic to learn he has exceeded his sales goal, the production manager may not share that enthusiasm, because having more sales than anticipated requires overtime for workers and additional maintenance on some machinery.Managers use budgeting to control and evaluate their operations.Two types of budgets that are discussed in this chapter are the static budget and the flexible budget.How do the two budgets differ and explain how the flexible budget is used in evaluating performance.