Explain standard costing and state the any 3 types of standards. State the importance of standards. - Explain what a budget is and identify and 5 types of budgets -Outline the procedure followed in the preparations of the Master Budget

Explain standard costing and state the any 3 types of standards. State the importance of standards. - Explain what a budget is and identify and 5 types of budgets -Outline the procedure followed in the preparations of the Master Budget

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 6MC: Which of the following is true in a bottom-up budgeting approach? Every expense needs to be...

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Question

Question One

Costing and Budgeting are key components in the control of business operations.

- Explain standard costing and state the any 3 types of standards. State the importance of standards.

- Explain what a budget is and identify and 5 types of budgets

-Outline the procedure followed in the preparations of the Master Budget

- State the importance of using budgets in the control of operational costs.

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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