Which of the following statements is true about a cash budget? Question 35 options: Cash budget provides a means of estimating how long it will take for a product to reach the break-even point and, therefore, how much money will be needed to launch a new product. Cash budget summarizes the cash flows into and out of a firm over a period of time. Cash budget focuses on the importance of maximizing a product’s per unit contribution. Cash budget helps an entrepreneur understand the concept of EBITDA break-even and how to calculate this point for each product a business’s produce.
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.
Which of the following statements is true about a cash budget?
Question 35 options:
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Cash budget provides a means of estimating how long it will take for a product to reach the break-even point and, therefore, how much money will be needed to launch a new product. |
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Cash budget summarizes the cash flows into and out of a firm over a period of time. |
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Cash budget focuses on the importance of maximizing a product’s per unit contribution. |
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Cash budget helps an entrepreneur understand the concept of EBITDA break-even and how to calculate this point for each product a business’s produce. |
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