Cost Accounting
Cost Accounting
15th Edition
ISBN: 9780133428834
Author: Horngren
Publisher: PEARSON
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Chapter 6, Problem 6.12Q
To determine

Budgeting:

The budgeting is a process of preparing budgets and the evaluation of it to see whether the budget is able to meet the objectives set by the company. This is a complete process which helps in understanding the spending of money in accordance with the income.

To explain: The way in which non-output based cost drivers can be incorporated into budgeting.

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Solve this general accounting question
Prius Catering budgeted 5,200 covers to be served in October, and the budgeted price/cover was $8.20. The variance analysis shows that the company's actual sales revenue was $46,800 in October. Given this information, what is the budget variance of sales revenue in October? a. $4,160 (U) b. $46,800 (F) c. $4,160 (F) d. $46,800 (U)
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