A Budget Is a Statement of a Corporation's Programs in Dollar

question 70

Multiple Choice

A budget is a statement of a corporation's programs in dollar terms.Which is not true of the budgetary function?

• A) It is used in planning and control.
• B) It serves as a detailed plan of strategy in action.
• C) Only one budget is necessary to capture all programs.
• D) It details the impact on the firm's future financial situation.
• E) It is used as a means of measuring success based on certain criteria.

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Definitions:

Customizing Department

A specialized department within an organization that tailors products or services to meet specific customer requirements.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate overhead costs to products based on a certain basis such as labor hours or machine hours.

Job-Order Costing

A costing system used to accumulate costs of manufacturing a job or batch, where each job or batch has its distinct characteristics.

Predetermined Overhead Rate

This rate is calculated before a period begins and is used to apply overhead costs to products based on a selected activity base.