A comprehensive or overall formal plan for a business that includes specific plans for expected sales, the units of product to be produced, the merchandise (or materials) to be purchased, the manufacturing, selling, administrative, and general expense to be incurred, the long-term assets to be purchased, and the amounts of cash to be borrowed or loans to be repaid, as well as a budgeted income statement and balance sheet, is called a:

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Master budget.
B	Cash budget.
C	Capital expenditures budget.
D	Continuous budget.
E	Operating budget.

Explanation:

Detailed explanation-1: -A plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period is called a: Sales budget.

Detailed explanation-2: -A plan that lists the types and amounts of selling expenses expected during the budget period is called a(n): Sales budget.

Detailed explanation-3: -The cash budget is prepared after the operating budgets (sales, manufacturing expenses or merchandise purchases, selling expenses, and general and administrative expenses) and the capital expenditures budget are prepared.

Detailed explanation-4: -Answer and Explanation: The answer is c. sales budget. Sales budget is the first budget that is made by the company.

There is 1 question to complete.