hich of the following statements is true? A budget reconciliation report shows the difference between actual profit and budgeted profit and does not show the other variances. Comparing the flexible budget to the as-if budget isolates a change in input price (e.g. budgeted input price vs. actual input price). Sales quantity (budgeted sales volume vs. actual sales volume) is the only item which differs between the master budget and the flexible budget. Activity-based costing is not used to evaluate customer profitability.
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.
hich of the following statements is true?
-
A budget reconciliation report shows the difference between actual profit and budgeted profit and does not show the other variances.
-
Comparing the flexible budget to the as-if budget isolates a change in input price (e.g. budgeted input price vs. actual input price).
-
Sales quantity (budgeted sales volume vs. actual sales volume) is the only item which differs between the
master budget and the flexible budget. -
Activity-based costing is not used to evaluate customer profitability.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
