Which of the following statements is false ? a. None of the given answers . b. For merchandising companies , a separate purchase budget would be prepared for each item carried in stock c. The interest expense in the budgeted income statement comes from the cash budget . d. We should prepare production budget before we prepare the sales budget . 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 .
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.
Step by step
Solved in 2 steps
