Compare and Contrast Static Budgets, Flexible Budgets, and Activity-Based Budgets

question 206

Essay

Compare and contrast static budgets, flexible budgets, and activity-based budgets.

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Definitions:

Net Income

The overall income a business makes once all costs, such as taxes and operational expenditures, are deducted from the total earnings.

Net Cash

This refers to the amount of cash remaining after all cash outflows are subtracted from all cash inflows over a given period.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenue.