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Which budget is prepared first?
The sales budget is the first budget to be prepared.
What are the advantages and disadvantages of production budget?
ADVANTAGES OF PRODUCTION BUDGET:-The following are the advantages of production budget:* Plant and machinary can be utilised to a maximum extent* Labour hours can be utilised to a greater extent*It help to reduce production expenses as there is uniform production*It is enough to maintain minimum stock of goods*Purchase cost budget can be prepared*Production cost budget can be prepared
What is a budget which is prepared for one level of activity?
a budget which is prepared for one level of activity is:
Which budget is prepared last?
Cash Budget
What is the fixed manufacturing overhead budget variance equal to?
Fixed manufacturing overhead budget variance is?
Why is the Sales budget the first budget to be prepared?
Budgets promote efficiency and serve as a deterrent to waste? A sales budget should be prepared before the production budget?
Why Manufacturing Account is prepared?
A Manufacturing Account is prepared to determine the total cost of goods manufactured during a specific period. It provides a detailed breakdown of production costs, including raw materials, labor, and overhead, allowing businesses to assess their manufacturing efficiency and profitability. This account also helps in valuing inventory for financial statements and aids in budgeting and cost control decisions. Overall, it offers valuable insights into the production process and cost management.
What is the order in which budgets are prepared?
Budgets are typically prepared in a sequential order, starting with the sales budget, which forecasts expected sales revenue. This is followed by the production budget, which outlines the number of units to be produced based on sales forecasts. Next, the direct materials, direct labor, and manufacturing overhead budgets are prepared to determine the costs associated with production. Finally, the operating budget is completed, incorporating all functional budgets, leading to the overall financial budget, including cash flow and capital expenditure budgets.
What is a budget that is prepared for one level of activity?
The budget that is prepared for one level of activity is known as a static budget. A static budget is often one of many other budgets that are created off of a master budget.
Who prepares a master budget?
it is prepared by the appointed , qualified budget comitee
When is Direct Labor Budget prepared?
Direct labor budget is prepared during planning stage before the actual production starts.
Is Manufacturing cost is overhead or variable?
Manufacturing cost is variable cost.
