Assume the following information for one of a company’s variable expenses: The amount of the expense in the planning budget is $9,000. The cost formula is $9.00 per hour. The actual level of activity is 900 hours. The spending variance is $290 unfavorable. The actual amount of the expense must be: Multiple Choice $8,390. $8,100. $8,890. $8,5
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.
Assume the following information for one of a company’s variable expenses:
- The amount of the expense in the planning budget is $9,000.
- The cost formula is $9.00 per hour.
- The actual level of activity is 900 hours.
- The spending variance is $290 unfavorable.
The actual amount of the expense must be:
-
$8,390.
-
$8,100.
-
$8,890.
-
$8,5
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