Taylor corpration is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcomng year. Past trends have indicated the following dollars were spent at three different levels of outpuut. Unit Levels 10,000 12,000 15,000 A costs 25,000 29,000 35,000 B costs 10,000 15000 15000 C costs 15,000 18,000 22500 In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as: a. semivariable, fixed and variable respectively. b. variable, fixed, and variable, respectively. c. semivariable, semivariable, and semivariable, respectively. d. variable, semivariable, and semivariable, respectively.
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.
Taylor corpration is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcomng year. Past trends have indicated the following dollars were spent at three different levels of outpuut.
Unit Levels
10,000 12,000 15,000
A costs 25,000 29,000 35,000
B costs 10,000 15000 15000
C costs 15,000 18,000 22500
In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as:
a. semivariable, fixed and variable respectively.
b. variable, fixed, and variable, respectively.
c. semivariable, semivariable, and semivariable, respectively.
d. variable, semivariable, and semivariable, respectively.
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