Which of the following is the most logical budget-setting method?
A) percentage-of-sales method
B) affordable method
C) competitive-parity method
D) objective-and-task method
E) push method
D
You might also like to view...
A ledger is commonly called the book of transactions because a business records all of its business transactions in it
Indicate whether the statement is true or false
How much did the Boys and Girls Club plan increase sales in Richmond, Virginia?
a. 2% b. 6% c. 10% d. 15%
If actual volume is smaller than the budgeted or expected volume, then a favorable volume variance will occur.
Answer the following statement true (T) or false (F)
Brong Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for March. Fixed Element per MonthVariable Element per Container RefurbishedActual Total for MarchRevenue $5,900$108,300Employee salaries and wages$49,500 $900$66,000Refurbishing materials $500$9,500Other expenses$40,300 $39,800When the company prepared its planning budget at the beginning of March, it assumed that 22 containers would have been refurbished. However, 18 containers were actually refurbished during March.The spending variance for total expenses for March would have been closest to:
A. $300 F B. $5,300 U C. $300 U D. $5,300 F