The first step in developing an operating budget is to ___________?

Correct answer: B. identify the problem

  • A. identify the product
  • B. identify the problem
  • C. identify the quartiles
  • D. identify the percentiles

Explanation

Operating-budget development begins by identifying the problem or planning objective that needs attention. Alternatives can only be developed and evaluated after this initial step.

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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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