6. A difference between standard costs used for cost control and budgeted costs a)Can exist because standard costs represent what costs should have been while budgeted cost represent expected actual costs. b)Can exist because established budgeted costs involve employee participation and standard cost do not c)Can exist because standard cost must be determined after the budget is prepared. d)Can exist because budgeted costs should be verified first by actual activities while standard cost are based on project costs.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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