Chronologically,the Last Part of the Master Budget to Be Prepared

question 4

Multiple Choice

Chronologically,the last part of the master budget to be prepared would be the

• A)pro forma financial statements.
• B)cash budget.
• C)capital budget
• D)production budget.

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Definitions:

Activity Drivers

Factors that influence the costs of business activities by measuring the amount of activity that drives costs.

Root Cause

The underlying or fundamental reason for a problem or issue, which, when addressed, prevents recurrence.

Cost Drivers

Activities or factors that cause a change in the cost of a good or service, crucial for budgeting, planning, and cost management.

Normal Costing

An accounting method that assigns costs to products based on direct materials, direct labor, and an allocated portion of manufacturing overhead based on normal activity levels.