Which of the following statements is most correct about step costs? they have the same behaviour as fixed costs between certain levels of activity they vary in direct proportion to changes in the level of activity they are sunk costs they are used in financial reporting and tax accounting purposes they are excluded from consideration in budgeting
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.
3.
Which of the following statements is most correct about step costs?
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they have the same behaviour as fixed costs between certain levels of activity
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they vary in direct proportion to changes in the level of activity
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they are sunk costs
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they are used in
financial reporting and tax accounting purposes -
they are excluded from consideration in budgeting
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