Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) The company's planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. If these are the company's only three expenses and the company uses revenue formula of $8.50q for budgeting purposes, what net operating income would appear in the company's flexible budget? Multiple Choice O $4,125 $4,225 $ 3,000 $ 4.009 $150 + $0.75q $3,975
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.
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