The master budget includes several individual budgets, which are interdependent. Provide at least two examples of connections (relationships) between budgets.
What will be an ideal response?
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There are several connections between the budgets, including: the sales budget is used in calculating budgeted cost of goods sold, which appears on the inventory purchases budget; the sales budget is used in estimating sales commissions, which appears on the selling and administrative expenses budget; the sales budget, inventory purchases budget, and selling and administrative expenses budget include schedules of cash receipts or cash payments, which are used in preparing the cash budget.
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If a foreign company is taken over by the host-country government and some form of compensation is paid, confiscation is said to have occurred
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. A unique factor of responsibility accounting performance reports is the focus on responsibility and controllability. 2. Because profit centers are only responsible for controlling costs, their performance reports include only information on actual costs versus budgeted costs. 3. Noncontrollable costs are the costs that can be influenced by the decisions of a manager. 4. All costs are ultimately controllable at the upper levels of management. 5. Management by exception directs management's attention to important differences between the actual and the budgeted amounts.
Why do manufacturers of products that are in the maturity stage of the product life cycle prefer to offer similar prices?
What will be an ideal response?
Explain the two perspectives of organizational culture. List the different culture types based on Competing Values Framework