Budgeting and Forecasting

true

A corporation's creditors usually do not be past the assets of the corporation to satisfy their claims. The most a stockholder can lose financially is the amount he or she invested.

yes

inventory (i.e. stock) is an asset, not a cost. It is considered a current asset, however may be illiquid depending on the product

It is cash inflow and it will be shown under cash flow from operative activities as an increase in cash flow.

i dont no plz u tell me

Retailers are firms that sell directly to the consumer, wholesalers are the firms that supply the retailers goods to sale to the consumers.

an operating budget and a capital budget

A fixed overhead will remain the same regardless of production levels while a variable overhead will change in relation to production levels. Controlling Overheads will reduce per unit costs thereby increasing contribution margin.

poor management in the store, poor records taken when receiving goods

true

Inventory carrying cost is that cost which is incurred by company to stock the inventory while cost for not having inventory means that cost which company has to bear due to non availability of inventory like loss of sales or good sales opportunity loss cost etc.

A cash budget begins with the starting cash balance to which cash inflows are added to get cash available.

Fixed cost is a cost that does not typically vary on unit production. On the other hand overhead cost is the summation of all variable cost.

Analogy: An estimate of costs based on historical data of a similar (analog) item.

purchase, marketing, selling and distribution expenses, production

the legislative budget board and the officer of budget planning

Vernon Street Capital is a company that provides individuals the ability to get into the lending industry. They provide a complete training program in addition to a lending platform to submit loans. They also have a variety of additional financial products to offer their customers who may be having difficulty qualifying for a traditional loan.

A non-discretionary cost is one that is not completely controllable by you. Typically you may be able to exert a little influence on such costs by understanding and manipulating consumption patterns but you are not able to unilaterally completely eliminate the cost from your cost-base.

a. A Store Manager's salary when the cost object is a unit of product

b. An Auditor's Salary when the cost object is the Audit Department

c. The Director's fees when the cost object is the Production Department

d. A Production supervisor's Salary when the cost object is the Stores dept

1.Budget helps to know the future results,

2.budgetary control technique helps to compare the estimated results with actual results.

3.budgeting focuses on standards or objectives.

4.budget helps subordinates to to compare their performance with budgetary standards and can do self appraisal.

5.through budgeting managers can allocate resources to departments according to their budgetary allocation.

6.budget help to improve coordination between various departments.

7.budgetary control helps to use the principle of management by exception by giving more attention to departments where actual operations and target deviate from budgetary standards.

Each business transaction will have only two entries.