C. 27,500 O d. 40,500 O e. 34,000 Of. 24,700 CLEAR MY CHOICE Which of the following statements is false? O a. For merchandising companies, a separate purchase budget would be prepared for each item carried in stock. O b. We should prepare sales budget before we prepare the production budget. O c. The interest expense in the budgeted income statement comes from the cash balance in the budgeted balance sheet. O d. None of the given answers. O e. If a company produces and sells customized goods only by order, it may not have any desired ending finished goods inventory when preparing its budgets. NEXT PAGE GE e to search
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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