alleryStart learning →In corporate budgeting, which item is typically the starting point?
ACapital expenditure plan
BDividend payout level
CClosing stock valuation
DExpected sales or revenue
Answer & Solution
Correct answer: D. Expected sales or revenue
Costs and resources are linked to the planned sales, so the sales or revenue estimate is made first.
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Standard quantity for output is 480 kg; 500 kg used; std price Rs 10. Usage variance?Std price Rs 12 per kg, actual Rs 13 for 500 kg bought. Materials price variance?Opening cash Rs 20,000, receipts Rs 65,000, payments Rs 70,000. Closing cash balance?Sales budget 5,000 units, opening stock 400, desired closing stock 600. Units to produce?Budgeted material cost was Rs 50,000 and actual cost Rs 54,000. What is the variance?A budget stated as Rs 40,000 fixed cost plus Rs 5 per unit variable cost gives what total The adjusted net income method begins with which starting item?The direct receipts and disbursements method suits which forecast horizon best?