Summer Company's static budget is based on a planned activity level of 25,000 units. At the same time the static budget was prepared, the management accountant prepared two additional budgets, one based on 20,000 units and one based on 30,000. The company actually produced and sold 29,000 units. In evaluating its performance, management should compare the company's actual revenues and costs to which of the following budgets? A) A budget based on 29,000 units B) A budget based on 25,000 units C) A budget based on 30,000 units D) A budget based on 20,000 units
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.
Summer Company's static budget is based on a planned activity level of 25,000 units. At the same time the static budget was prepared, the
A) A budget based on 29,000 units
B) A budget based on 25,000 units
C) A budget based on 30,000 units
D) A budget based on 20,000 units
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
