MANAGENT ACCOUNTING Question And Answers
- What is flexible budget?
Answer:- A flexible budget is a budget that adjusts or flexes with changes in volume or activity.
- What is cash budget?
Answer:- A cash budget is an estimation of the cash inflows and outflows for a business over a specific period of time.
- What is production budget?
Answer:- The production budget calculates the number of units of products that must be manufactured, and is derived from a combination of the sales forecast and the planned amount of finished goods inventory to have on hand (usually as safety stock to cover for unexpected increases in demand).
- What is sales budget?
Answer:- A sales budget is management’s estimate of sales for a future financial period. A business uses sales budgets to set department goals, estimate earnings and forecast production requirements. The sales budget affects both other operating budgets and the overall master budget of the company.
- What is budget period?
Answer:- Budget Period is the specified future period of time over which revenue and expenses are estimated.
- What is semi variable expense?
Answer:- A semi-variable cost is a cost that contains both fixed and variable cost elements.
- Give two examples for fixed expense.
Answer:- Fixed expenses are those expenses that do not change when there is a change in production or sales level. Expenses like rent, insurance, payment on loans, management salaries, advertising are examples of fixed expenses.
- What is the formula to find production in production budget?
Answer:- Production = Sales+ closing stock – opening stock
- Give two limitations of management accounting.
Answer:- Based on Financial and Cost Records
Personal Bias
Lack of Knowledge and Understanding of the Related Subjects
Provides only Data
Management Accounting is only a Tool
- Give two examples for variable expense.
Answer:- Piece rate labor.
Production supplies.
Commissions.
