How did this increase affect Incremental Company’s budgeted break-even point and budgeted margin of safety
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.
On January 1, 2019, Finals Company increased its direct labor wage rates. All
other budgeted costs and revenues were unchanged. How did this increase
affect Incremental Company’s budgeted break-even point and budgeted margin of safety?
A// Budgeted break-even point - Increase; Budgeted margin of safety - Increase
B// Budgeted break-even point - Increase; Budgeted margin of safety - Decrease
C// Budgeted break-even point - Decrease; Budgeted margin of safety - Decrease
D// Budgeted break-even point - Decrease; Budgeted margin of safety - Increase
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