COST ACCOUNTING
THE MASTER BUDGET
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Your data, when estimated, will be subject to the judgment or experience of those who determined it
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Coordinate and link the activities of the organization
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Coordinate the different cost centers in order to ensure that the company runs in a comprehensive manner
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They facilitate administrative control
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Detailed explanation-1: -A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.
Detailed explanation-2: -Benefits of a business budget monitor performance. meet your objectives. improve decision-making. identify problems before they occur-such as the need to raise finance or cash flow difficulties.
Detailed explanation-3: -Advantages of budgeting and budgetary control Forces management to look ahead, to set out detailed plans for achieving the targets for each department, operation and (ideally) each manager, to anticipate and give the organisation purpose and direction. Promotes coordination and communication.
Detailed explanation-4: –Budgeting provides the basis for project cost control. By properly measuring the project’s actual cost against the approved budget, you can be able to determine if the project is progressing according to the plan or not.