The starting point in the operating budget is __________?
Correct answer: A. revenue budget
- A. revenue budget
- B. material list
- C. cost budget
- D. list of investors
Explanation
The operating budget normally begins with the revenue or sales budget because expected sales determine production, purchasing, staffing, and other operating requirements. Cost budgets are prepared afterward to support the planned activity level.
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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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941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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More Cost Accounting questions
The higher and accurate budgeted profit forecast of managers lead to __________?
The budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to ___________?
The budgeted income statement and the supporting budget schedules are categorized under _____________?
The quantitative expression, of action plan by the management of the firm for a specified period of time is classified as ___________?
The budget plan in many companies is also referred as ___________?
The practice, which makes target more achievable by underestimating revenues or overestimating cost is called _____________?