The second step in developing operating budget is to ___________?

Correct answer: C. obtain information

  • A. plan coordination
  • B. plan accounts
  • C. obtain information
  • D. coverage information

Explanation

After the initial planning stage, management must obtain the sales, production, cost and other information needed to prepare the operating budget. Planning coordination is an objective of the process, not the information-gathering 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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