Aging is an important process when it comes to cheese making. When the cheese is all ready to go out, it is given a aging time. It is this aging period that defines the flavor, taste and aroma of any cheese. Edam cheese ages well and with time it is much better. Different cheese varieties have different aging periods.
This chapter introduces flexible budgets. The most common budgets prepared on a flexible basis focus on total production costs, or some measure of profitability, such as an income statement budget. Flexible budgets are useful for performance evaluation of cost and profit centers.
The flexible budget variance is the difference between any line-item in the flexible budget and the corresponding line-item from the statement of actual results. The following steps are used to prepare a flexible budget: 1. Determine the budgeted variable cost per unit of output.Also determine the budgeted sales price per unit of output, if the entity to which the budget applies generates revenue (e.g., the retailer or the hospital).he following steps are used to prepare a flexible budget: 1. Determine the budgeted variable cost per unit of output. Also determine the budgeted sales price per unit of output, if the entity to which the budget applies generates revenue (e.g., the retailer or the hospital).