8.Which of the following would appear on both the budgeted income statement and on the schedule of expected cash disbursements for operating expenses? (A) Depreciation expense (B) Rent expense (C) Sales commission expense (D) Both B and C
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.
8.Which of the following would appear on both the
9.Which of the following is not an underlying assumption of the cost-volume-profit graph? (A) Expenses are categorized into fixed and variable (B) Revenues and expenses are linear over the relevant range (C) Efficiency and productivity will be unchanged (D) Sales mix will not be constant
- If total fixed costs decrease while the sale price per unit and the variable costs per unit remain constant, the: (A) contribution margin increases (B) contribution margin decreases (C) breakeven point increases (D) breakeven point decreases
- A business always absorbs its
overheads on labour hours. In the 8th period 18,000 hours were worked, actual overheads were $279,000 and there was$36,000 over-absorption. The overhead absorption rate per hour was: (A) $15.50 (B) $17.50 (C) $18.00 (D) $13.50
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