The budgeted income statement and the supporting budget schedules are categorized under _____________?
Correct answer: A. operating budget
- A. operating budget
- B. slack statement
- C. budgeted income statement
- D. focused statement
Explanation
An operating budget includes the budgeted income statement together with supporting schedules such as sales, production, direct materials, labour and overhead budgets. It focuses on routine operating activities rather than financing or capital expenditure.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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More Cost Accounting questions
The document, which contains the information about the used material sequence, detail and quantity of raw material is classified as __________?
The last step in developing operating budget is ____________?
If the indirect manufacturing labor is $20000, power cost is $5000, maintenance and supplies are of $10000 then the manufacturing budget will be ____________?
The budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to ___________?
The higher and accurate budgeted profit forecast of managers lead to __________?
The starting point in the operating budget is __________?