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Managerial Accounting
Introduction to Managerial Accounting
Jeannie M. Folk
Ray H. Garrison
Eric Noreen

Flexible Budgets and Overhead Analysis

Internet Exercises

Student Instructions:

On its web site, SRC Software Inc. (http://www.srcsoftware.com/) states that it "is the market leader in flexible and sophisticated financial planning solutions for the enterprise, with over 1,200 implementations worldwide." The company provides sophisticated and flexible budgeting and planning solutions available. The company's web site includes some case studies written by its customers. Read the case, Brink's Home Security Streamlines Their Budgeting Process With SRC Software's Advisor Series (http://www.srcsoftware.com/case_brinks.htm), and answer the following questions:

1. Why did Brink's Home Security decide to replace its old budgeting system?
2. Why is the new budgeting system used by Brink's described as an improvement over the old?
3. Would you describe the new budgeting system as a static or flexible budgeting system? Why?





McGraw-Hill/Irwin