COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sales budget.
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Cash budget.
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Budget income statement.
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Budget balance sheet.
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All of the above are financial budgets.
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Detailed explanation-1: -Sales budgets and direct labor budgets are operating budgets, not financial budgets. The marginal expenditure budget is not one of the master budgets.
Detailed explanation-2: -A sales budget is a financial plan that estimates a company’s total revenue in a specific time period. It focuses on two things-the number of products sold and the price at which they are sold-to predict how the company will perform.
Detailed explanation-3: -Financial budgets typically include a balance sheet, budgeted income statement, capital expenditures budget, and cash budget.
Detailed explanation-4: -Detailed Solution. The correct answer is Reserved. A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis. Budget is a microeconomic concept that shows the trade-off made when one good is exchanged for another.