The interviewer asked you that which one of the budgets will help as a control tool and prepared where the level of activity cannot be estimated with accuracy?. Being the accounting specialization student choose the cor

The interviewer asked you that which one of the budgets will help as a control tool and prepared where the level of activity cannot be estimated with accuracy?. Being the accounting specialization student choose the cor

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 5TIF: Static budget for a service company A hank manager of City Savings Rank Inc, uses the managerial...

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Concept explainers

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.

Question

46-Assume that you have attended for an interview in Solar Aluminium LLC for the post of accountant. The interviewer asked you that which one of the budgets will help as a control tool and prepared where the level of activity cannot be estimated with accuracy?. Being the accounting specialization student choose the correct answer from the following given options. O a. Master Budget O b. Flexible budgets O c. Fixed budget d. Zero based budget

Definition Definition Summary of all functional budgets such as lower-level budgets, cash flow forecasts, budgeted financial statements, and financial plans of an organization for the upcoming period. A master budget provides the financial information of the company on a periodic basis such as monthly, quarterly, half yearly or annually.

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