COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Plant capacity.
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General economic and industry conditions.
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Past sales volume.
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The cash budget.
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Proposed selling expenses.
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Detailed explanation-1: -Which of the following factors is least likely to be considered in preparing a sales budget? The capital expenditures budget.
Detailed explanation-2: -The correct answer is The Capital Expenditures Budget. Capital expenditure budget is the company’s plan for the assets to be purchased or disposed at a specific period. This is not considered in making sales budget because it is not related to sales.
Detailed explanation-3: -Which of the following is not included in a retail company’s sales budget? The cost of the goods expected to be sold each month.
Detailed explanation-4: -Short-term cash budgets will look at items such as utility bills, rent, payroll, payments to suppliers, other operating expenses, and investments. Long-term cash budgets focus on quarterly and annual tax payments, capital expenditure projects, and long-term investments.