0
Why is it necessary to regularly check actual income and expenditure against budgets at regular intervals?
Wiki User
∙ 12y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What is current expenditure?
Capital Expenditure:These are expenditure incurred in acquiring non-current assets or in making extension to existing non-current assets. Capital expenditure increases the earning capacity of a business. Businesses benefit from such type of expenditure over a long period of time. For example, a delivery vehicle can be used for over 5 years to deliver goods to customers. Computers may easily be used for 3 or 4 years. A building may be used for over 20 years.For the above reasons, capital expenditure are entered as non-current assets in the balance sheet. The cost of non-current assets is charged against profit over the years the assets can used and benefits derived. Such process is called "provision for depreciation".
What is the verb of the noun expense?
The word 'expense' is both a noun and a verb.The verb to 'expense' means to offset an item of expenditure against taxable income; to charge something to an expense account; a word for an action.
Take a sample budget of retail store and write your understanding the store budget?
Methodical control of an organization's operations through establishment of standards and targets regarding income and expenditure, and a continuous monitoring and adjustment of performance against them. = =
Why depreciation is an application of accruals concept?
The accruals concept states that the income for the year must be matched against the expenditure. Depreciation is the reduction in value of an asset with the passage of time, due to particular wear and tear.(Answer to the question)- Depreciating the asset is an expenditure for the business. This should be matched with the income it generates (say for example - delivery vehicles used for the transport of goods) to get a true and fair profit in the Income Statement.
What is the difference between actual costs and planned costs?
When setting out a cost budget you are using an estimated figure of what X will cost in the next Y months. This figure is not plucked out of the sky but calculated on prices at the time of budget creation plus addition % to cover the chances of inflation. When you reach the point of that expenditure it may be found that the cost will be (1) As calculated (2) Higher than calculated (3) Lower than calculated 1,2, and 3 are the ACTUAL costs and can be compared against the Planned Cost data. Where the actual meets options 1 and 3 then the cost will normally be accepted. where the actual is option 2 then a review is undertaken to establish the need to allow the cost, reevaluated the need for the cost or to reject the expenditure outlay. the actuals are recorded against the planned so that a historic pattern for the next planning term is used. It will also serve to inform the business plan of issues in future cost controls
Is fire effective against ghost Pokemon?
fire is regularly effective against ghost types
Are substances able to travel against their concentration gradient?
Yes, but only with an expenditure of energy which characterizes active transport.
What term best defines A charge against available funds resulting from a voucher claim or other document approved by a competent authority?
Expenditure
How can you protect ourselves against microorganisms?
by washing your hands regularly before and after meals and the toilet
Is rock good against ghost?
Rock attacks can be used against ghost types. It will be regularly effective if the ghost type is ONLY ghost.
Explain the reasons for reviewing progress regularly against the development plan?
To identify areas of weaknesses
Give reseason why it is necessary to monitor and record the results of works against programmes and schedules?
The reason why it is necessary to monitor and record the results of works against programmes and schedules is to spot mistakes and errors.
What is capital and what is revenue expenditure?
Revenue expense are costs in the for day to day running of the business for example servicing a machine, spare parts etc. Revenue expenditure is normally charged against profit in the Income..Capital expenditure is an expenditure incurred in acquiring a fixed asset and any other cost incurred in putting the asset in a usable condition like cost of transportation, installation and cost.
What the use of sona is it really necessary?
Sona is very necessary cause the opposing parties will be given a chance to protest against the government
Which man had his own radio show in the 1930s and regularly spoke against FDR's New Deal?
D. Father Charles Coughlin
Winston Churchill?
Political rival of Chamberlain who regularly spoke out against the policy of appeasement toward Hitler
What is current expenditure?
Capital Expenditure:These are expenditure incurred in acquiring non-current assets or in making extension to existing non-current assets. Capital expenditure increases the earning capacity of a business. Businesses benefit from such type of expenditure over a long period of time. For example, a delivery vehicle can be used for over 5 years to deliver goods to customers. Computers may easily be used for 3 or 4 years. A building may be used for over 20 years.For the above reasons, capital expenditure are entered as non-current assets in the balance sheet. The cost of non-current assets is charged against profit over the years the assets can used and benefits derived. Such process is called "provision for depreciation".
