ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net Sales
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Cost of Purchases
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Selling Expenses
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Administrative Expenses
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Detailed explanation-1: -There are four common types of budgets that companies use: (1) incremental, (2) activity-based, (3) value proposition, and (4) zero-based. These four budgeting methods each have their own advantages and disadvantages, which will be discussed in more detail in this guide. Source: CFI’s Budgeting & Forecasting Course.
Detailed explanation-2: -A budget schedule refers to the frequency with which you update and maintain your budget. That means regularly adding new transactions, putting those transactions in the right categories and then examining the budget. Start a budget schedule by pulling up your budget and loading all the expenses.
Detailed explanation-3: -The three types of annual Government budgets based on estimates are Surplus Budget, Balanced Budget, and Deficit Budget.
Detailed explanation-4: -Choose a time period. Take stock of your inventory and prices. Look at your past sales data. Compare your data to the current industry. Talk to your sales reps and customers. Factor in market trends and current events. Create your budget. 26-May-2022