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A budget is a financial plan for a specific period of time. It helps businesses to track their income and expenses, and to make sure that they are staying on track to meet their financial goals. There are many different types of budgets, each with its own purpose.
An operating budget is a plan for the day-to-day operations of a business. It includes things like sales, expenses, and inventory levels. An operating budget is typically prepared on a monthly or quarterly basis.
A capital budget is a plan for the long-term investments of a business. It includes things like new equipment, buildings, and land. A capital budget is typically prepared on an annual basis.
A cash budget is a plan for the cash flow of a business. It includes things like income, expenses, and cash on hand. A cash budget is typically prepared on a monthly or quarterly basis.
A zero-based budget is a budgeting method that starts from scratch each year. This means that every expense must be justified, even if it was included in the previous year’s budget. Zero-based budgeting can help businesses to identify and eliminate unnecessary expenses.
A rolling budget is a budget that is constantly being updated. This means that the budget is not just for a specific period of time, but is always up-to-date with the latest financial information. Rolling budgets can help businesses to be more agile and responsive to changes in the market.
A fixed budget is a budget that is not adjusted for changes in sales or expenses. This type of budget is often used for businesses with stable sales and expenses. Fixed budgets can be helpful for businesses that want to maintain a consistent level of spending.
A flexible budget is a budget that is adjusted for changes in sales or expenses. This type of budget is often used for businesses with variable sales or expenses. Flexible budgets can help businesses to avoid overspending or underspending.
A continuous budget is a budget that is always in effect. This type of budget is often used for businesses with a lot of cash flow. Continuous budgets can help businesses to avoid cash shortages.
A master budget is a comprehensive budget that includes all of the other types of budgets. This type of budget is often used for large businesses. Master budgets can help businesses to track their overall financial performance.
A sales budget is a plan for the sales of a business. It includes things like the expected sales volume, sales price, and sales mix. A sales budget is typically prepared on a monthly or quarterly basis.
A production budget is a plan for the production of a business. It includes things like the expected production volume, production cost, and inventory levels. A production budget is typically prepared on a monthly or quarterly basis.
A direct materials budget is a plan for the direct materials used in the production of a business. It includes things like the expected usage of direct materials, the cost of direct materials, and the inventory levels of direct materials. A direct materials budget is typically prepared on a monthly or quarterly basis.
A direct labor budget is a plan for the direct labor used in the production of a business. It includes things like the expected hours of direct labor, the cost of direct labor, and the inventory levels of direct labor. A direct labor budget is typically prepared on a monthly or quarterly basis.
A manufacturing overhead budget is a plan for the manufacturing overhead costs of a business. It includes things like the expected costs of indirect materials, indirect labor, and factory overhead. A manufacturing overhead budget is typically prepared on a monthly or quarterly basis.
A selling and administrative expense budget is a plan for the selling and administrative expenses of a business. It includes things like the expected costs of sales, marketing, and general and administrative expenses. A selling and administrative expense budget is typically prepared on a monthly or quarterly basis.
A cost of goods sold budget is a plan for the cost of goods sold of a business. It includes things like the expected cost of direct materials, direct labor, and manufacturing overhead. A cost of goods sold budget is typically prepared on a monthly or quarterly basis.
An income statement budget is a plan for the income statement of a business. It includes things like the expected sales revenue, cost of goods sold, gross profit, operating expenses, and net income. An income statement budget is typically prepared on a monthly or quarterly basis.
A balance sheet budget is a plan for the balance sheet of a business. It includes things like the expected assets, liabilities, and EquityEquity. A balance sheet budget is typically prepared on a monthly or quarterly basis.
A cash flow budget is a plan for the cash flow of a business. It includes things like the expected cash receipts, cash disbursements, and net cash flow. A cash flow budget is typically prepared on a monthly or quarterly basis.
Budgeting is an important part of financial management. By creating and tracking budgets, businesses can ensure that they are staying on track to meet their financial goals.
Operating budget
An operating budget is a financial plan for a company’s day-to-day operations. It outlines the company’s expected revenues and expenses for the upcoming year. The operating budget is used to track the company’s performance and make necessary adjustments.
Capital budget
A capital budget is a financial plan for a company’s long-term investments. It outlines the company’s plans for acquiring new assets, such as property, plant, and equipment. The capital budget is used to ensure that the company’s investments are aligned with its long-term goals.
Cash budget
A cash budget is a financial plan that projects a company’s cash inflows and outflows over a specified period of time. The cash budget is used to ensure that the company has enough cash on hand to meet its obligations.
Zero-based budget
A zero-based budget is a budgeting method that requires managers to justify all expenses, regardless of whether they were incurred in the previous year. The zero-based budget is designed to force managers to make tough choices about how to allocate resources.
Rolling budget
A rolling budget is a budget that is updated on a regular basis, typically monthly or quarterly. The rolling budget allows the company to stay up-to-date on its financial performance and make necessary adjustments.
Fixed budget
A fixed budget is a budget that is based on a set level of activity. The fixed budget is not adjusted for changes in activity, such as changes in sales or production.
Flexible budget
A flexible budget is a budget that is adjusted for changes in activity. The flexible budget allows the company to more accurately track its financial performance.
Continuous budget
A continuous budget is a budget that is always in effect. The continuous budget is updated on a regular basis, typically monthly or quarterly. The continuous budget allows the company to stay up-to-date on its financial performance and make necessary adjustments.
Master budget
A master budget is a comprehensive financial plan for a company. It includes the operating budget, capital budget, cash budget, and other financial plans. The master budget is used to track the company’s performance and make necessary adjustments.
Sales budget
A sales budget is a financial plan that projects a company’s sales for the upcoming year. The sales budget is used to determine the company’s production needs and to forecast its financial performance.
Production budget
A production budget is a financial plan that projects a company’s production needs for the upcoming year. The production budget is used to determine the company’s material and labor needs and to forecast its financial performance.
Direct materials budget
A direct materials budget is a financial plan that projects a company’s direct material needs for the upcoming year. The direct materials budget is used to determine the company’s material purchases and to forecast its financial performance.
Direct labor budget
A direct labor budget is a financial plan that projects a company’s direct labor needs for the upcoming year. The direct labor budget is used to determine the company’s labor costs and to forecast its financial performance.
Manufacturing overhead budget
A manufacturing overhead budget is a financial plan that projects a company’s manufacturing overhead costs for the upcoming year. The manufacturing overhead budget is used to determine the company’s overhead costs and to forecast its financial performance.
Selling and administrative expense budget
A selling and administrative expense budget is a financial plan that projects a company’s selling and administrative expenses for the upcoming year. The selling and administrative expense budget is used to determine the company’s selling and administrative expenses and to forecast its financial performance.
Cost of goods sold budget
A cost of goods sold budget is a financial plan that projects a company’s cost of goods sold for the upcoming year. The cost of goods sold budget is used to determine the company’s cost of goods sold and to forecast its financial performance.
Income statement budget
An income statement budget is a financial plan that projects a company’s income statement for the upcoming year. The income statement budget is used to determine the company’s income and expenses and to forecast its financial performance.
Balance sheet budget
A balance sheet budget is a financial plan that projects a company’s balance sheet for the upcoming year. The balance sheet budget is used to determine the company’s assets, liabilities, and equity and to forecast its financial performance.
Cash flow budget
A cash flow budget is a financial plan that projects a company’s cash flows for the upcoming year. The cash flow budget is used to determine the company’s cash inflows and outflows and to forecast its financial performance.
1. A budget that is prepared for a specific period of time and does not change, even if the actual results differ from the budgeted results, is called a:
(A) Fixed budget
(B) Flexible budget
(CC) Continuous budget
(D) Zero-based budget
A budget that is prepared for a specific period of time and is adjusted as the actual results are known is called a:
(A) Fixed budget
(B) Flexible budget
(C) Continuous budget
(D) Zero-based budgetA budget that is prepared for a specific period of time and is rolled forward each month or quarter is called a:
(A) Fixed budget
(B) Flexible budget
(C) Continuous budget
(D) Zero-based budgetA budget that requires managers to justify all of their expenses each year is called a:
(A) Fixed budget
(B) Flexible budget
(C) Continuous budget
(D) Zero-based budgetA budget that is used to plan for the future sales of a company is called a:
(A) Sales budget
(B) Production budget
(C) Direct materials budget
(D) Direct labor budgetA budget that is used to plan for the production of a company is called a:
(A) Sales budget
(B) Production budget
(C) Direct materials budget
(D) Direct labor budgetA budget that is used to plan for the purchase of direct materials is called a:
(A) Sales budget
(B) Production budget
(C) Direct materials budget
(D) Direct labor budgetA budget that is used to plan for the labor costs associated with production is called a:
(A) Sales budget
(B) Production budget
(C) Direct materials budget
(D) Direct labor budgetA budget that is used to plan for the costs of manufacturing overhead is called a:
(A) Sales budget
(B) Production budget
(C) Direct materials budget
(D) Direct labor budgetA budget that is used to plan for the costs of selling and administrative expenses is called a:
(A) Sales budget
(B) Production budget
(C) Direct materials budget
(D) Direct labor budgetA budget that is used to plan for the cost of goods sold is called a:
(A) Sales budget
(B) Production budget
(C) Direct materials budget
(D) Direct labor budgetA budget that is used to plan for the revenues and expenses of a company is called an:
(A) Income statement budget
(B) Balance sheet budget
(C) Cash flow budget
(D) Master budgetA budget that is used to plan for the assets, liabilities, and equity of a company is called a:
(A) Income statement budget
(B) Balance sheet budget
(C) Cash flow budget
(D) Master budgetA budget that is used to plan for the cash inflows and outflows of a company is called a:
(A) Income statement budget
(B) Balance sheet budget
(C) Cash flow budget
(D) Master budgetA budget that includes all of the other budgets of a company is called a:
(A) Income statement budget
(B) Balance sheet budget
(C) Cash flow budget
(D) Master budget