Assume that the amount of one of a company's variable expenses in its flexible budget is $40,000. The actual amount of the expense is $42, 000 and the amount in the company's planning budget is $44, 800 The activity variance for this expense is: Multiple Choice $2,400 U. $2,400 F. $4, 800 F. $4.800 U.
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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