Budgeting and Forecasting

Each business transaction will have only two entries.

In what situations will a static budget be most effective in evaluating a manager's effectiveness?

A. The company has substantial variable costs.

B. The planned activity levels match actual activity levels.

C. The company has substantial fixed costs.

D. The company has no fixed costs.

operating budget pays for day-to-day expenses, like salaries of a state employee and capital budget pays for major capital, or investment, spending, like building a bridge the money comes from there.

Rigid Budget: It does not change with actual volume of activity achieved. Thus it is known as a Rigid or inflexible budget.

Difference between actual overhead and applied overhead is as follows:

Difference = 33451 - 32000 = 1450

Difference of variance will be charged to income statement.

NO. Do you need more to know??

When you budget for capital expenditures, you plan to buy assets. Assets include equipment and property that you expect to last more than one year. The budget for these purchases must come from cash on hand to qualify as capital budget expenditures. You must have a capital budget so you can continue to grow your business by purchasing assets that will produce income. Expenses Budgeting Your operational budget covers day-to-day expenses. This can include wages, rent, utilities and purchases of items that are intended to last less than a year. If you borrow money for capital expenditures, the expense comes out of your operational budget because you will have to service that loan with monthly payments. The operational budget tells you how much cash you need to take in each month to cover your bills.

A budget committee decides on how money is allotted and a budget manual is the plan to implement.

Budget committee comprise top managers who draft budget manual and budger calendar, and also review and approve budget for operational departments.

A double entry system in bookkeeping is a set of rules for recording financial information in a financial accounting system. In this system every transaction or event changes at least two different nominal ledgers accounts. Nowadays book-keeping tasks are made very easy by availability of softwares online. One such online bookkeeping software is nuima.biz. There are so many facilities for maintaining records such as customers list, employee list, banking transactions are available.

http://numia.biz

Deluxe has been an industry leader in providing everything from business checks and forms, to promotional products, logo design, website design, and other marketing services, as well as payroll services and more. Deluxe has everything a business needs.

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yes

Education.

Why is saving considered a financial investment

sum of the year digit (syd), declining balance (db), double declining balance (ddb) and straight line.

Step Cost remains fixed for certain range of expense and then increases while variable cost change with change in every unit of product.

Sundry debtors means the debtor to whom goods are sold on credit for various reason

not merely goods sell on credit.

forecasting

capacity cost : it is the cost which is incurred to increase its ability which can reduce or avoid by shutting down business

variable cost: which varies with the output

Standard cost is the cost which is basis to measure the actual cost

historical cost is the initial cost

The finished inventory, aka Cost of Goods Sold, is determined by either

a. Cost of Goods Available for Sale less Cost of Ending Inventory
or
b. Using either LIFO, FIFO or Weighted Average method of cost-flow calculation.

Cash forecast is a forecasting activity in which future is predicted while in cash flow statement only cash inflows and outflows are shown which are already done.

Process costing and operational costing systems are used in accounting, usually in relation to the manufacturing sector. Both refer to the costs of production, but they differ in terms of methodology and application. Process costing is used in industries where the products are all basically the same, such as bricks or cement. Operational costing, on the other hand, is used in industries where the products are similar but may have some variation in terms parts or the quality of materials.

On the managing account list, select the account and click the Certify (or Approve) button

true or false, managers should under no conditions take actions that their firms risk relative to the market, regqardless of how much those actions would increase the firms expected rate return.