Costing - Study Mode
[#586] Continuous budget is also known as
Correct Answer
(A) rolling budget
Explanation
Solution: Continuous budget is also known as rolling budget. A rolling budget is continually updated to add a new budget period as the most recent budget period is completed.
[#587] Budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as
Correct Answer
(D) master budget
Explanation
Solution: Budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as master budget. The master budget is the aggregation of all lower-level budgets produced by a company's various functional areas, and also includes budgeted financial statements, a cash forecast, and a financing plan.
[#588] First step in developing an operating budget is to
Correct Answer
(B) identify problem
Explanation
Solution: First step in developing an operating budget is to identify problem. An operating budget is a forecast of the revenues and expenses expected for one or more future periods.
[#589] Second step in developing operating budget is to
Correct Answer
(C) obtain information
Explanation
Solution: Second step in developing operating budget is to obtain information. An operating budget is a forecast of the revenues and expenses expected for one or more future periods.
[#590] Factor which provides hedge to managers in adverse and unexpected circumstances is known as
Correct Answer
(A) budgetary slack
Explanation
Solution: Factor which provides hedge to managers in adverse and unexpected circumstances is known as budgetary slack. Budgetary slack is the deliberate under-estimation of budgeted revenue or over-estimation of budgeted expenses.