Costing - Study Mode

[#581] Which of the following would be included in a cash budget?
Correct Answer

(C) Dividends

[#582] Which one of the following concepts is used as fund in the preparation of funds flow statement?
Correct Answer

(D) All Financial Resources

[#583] Model which refers possibility for management to conduct sensitivity analysis can be categorized under
Correct Answer

(B) financial planning models

Explanation

Solution: Model which refers possibility for management to conduct sensitivity analysis can be categorized under financial planning models. A financial planning model uses certain elements to create a future financial plan for a company.

[#584] Fourth step in development of operating budget is to
Correct Answer

(A) choose alternatives

Explanation

Solution: Fourth step in development of operating budget is to choose alternatives. An operating budget is a forecast of the revenues and expenses expected for one or more future periods.

[#585] What-if technique, which examines changes in results if original prediction would not be achieved is called
Correct Answer

(C) sensitivity analysis

Explanation

Solution: Technique that examines changes in results if original prediction would not be achieved is called sensitivity analysis. A sensitivity analysis determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.