The budget and budgetary control. Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

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Answer 1

Question

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

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Students have asked these similar questions

Bayside Manufacturing's budgeted variable overheads for a period amounted to $30,000. During this period, the company spent $29,400 on variable overheads. The company's level of production was expected to require 15,000 labor hours, but the actual amount of labor hours used was only 13,500 hours. What was the variable overhead expenditure variance for the period?Solve this

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General Accounting

Answer 2

Question

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

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Answer 3

Question

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

Answer 6

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

Answer 7

Chapter 8, Problem 1Q

To determine

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

Solution:

A budget is a financial statement that includes the forecasted items like revenue, sales and any other item.
Budgetary control refers to the comparison of budgeted items and actual items and taking action to overcome the the difference between them.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

A budget is a financial statement made for the purpose of knowing prospective revenue, expenses and any other items. Budgeting is used by the managers only and not reported to the external parties. In making a budget, certain assumptions are made in the starting like increase in the revenue, increase in the cost or any other assumptions. This assumption helps in making the budget. A budget cannot be made without the assumptions.
A budgetary control refers to a process, in which the budgeted items are matched with actual items to know the difference between them and take action to overcome that difference, if difference is not good for the firm. Budgetary control is used by the companies to know about the factors that prove the budgeted estimate wrong. The management takes action on the factors which are unhealthy for the firm, so that firm may not lose revenue from that reason again.

Hence, budget includes the forecasted items for a particular period of time and budgetary control are used to take corrective action to overcome any problem.

Answer 12

Ch. 8 - Prob. 1Q Ch. 8 - Prob. 2Q Ch. 8 - Prob. 3Q Ch. 8 - 8-4 What is a master budget? Briefly describe its...Ch. 8 - 8—5 Why is the sales forecast the starting point...Ch. 8 - Prob. 6Q Ch. 8 - 8-7 Why is it a good idea to create a ‘"Budgeting...Ch. 8 - 8-8 What is a self-imposed budget? What are the...Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

The budget and budgetary control. Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Concept explainers

Videos

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Answer to Problem 1Q

Explanation of Solution

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Chapter 8 Solutions

The budget and budgetary control. Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Concept explainers

Videos

To explain: The budget and budgetary control. Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.

Answer to Problem 1Q

Explanation of Solution

Want to see more full solutions like this?

Chapter 8 Solutions

To explain: The budget and budgetary control.

Introduction: A budget is a financial statement that includes the forecasted items for a particular period of time. Forecasted items include revenue, sales, profit and any other item that budget maker wants to include.