company's CEO has a meeting with the sales manager to discuss plans to close the gap between the forecast and the original budgeted sales for the nex at is this process an example of? edback control activity-based budget ling budget -forward control

company's CEO has a meeting with the sales manager to discuss plans to close the gap between the forecast and the original budgeted sales for the nex at is this process an example of? edback control activity-based budget ling budget -forward control

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

A company's sales for the nine months to 30 September are $2.5m. The sales forecast for the next three months is $500,000 in total. The company's budgeted sales for the year are $3.4m
The company's CEO has a meeting with the sales manager to discuss plans to close the gap between the forecast and the original budgeted sales for the next quarter.
What is this process an example of?
Feedback control
An activity-based budget
A rolling budget
Feed-forward control

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