A budget is a detailed financial plan that quantifies future expectations and actions relative to acquiring and using resources. a. True b. False
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
1. A budget is a detailed financial plan that quantifies future expectations and actions relative to acquiring and using resources.
a. True
b. False
2. Budgets should not be used to provide managers with “pre-approval” for the execution of spending plans.
a. True
b. False
3. A flexible budget is not designed to change with changes in activity level.
a. True
b. False
4. The production budget comes before the materials purchases budget.
a.True
b. False
5. The starting point for the
a. False
b. True
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