especially the materials being used in the production. One thing he noticed is that the actual expenditures does not conform to its standards. The following can the possible reasons, except: A. Failure to take cash discounts available B. Using a different grade or a substitute material.
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.
KKK Co is trying to analyze its costs if it is exceeding to its budgeted figures especially the materials being used in the production. One thing he noticed is that the actual expenditures does not conform to its standards. The following can the possible reasons, except:
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