What Is the Starting Point for the Development of the Master

question 44

Multiple Choice

What is the starting point for the development of the master budget by merchandisers?

• A)cash budget
• B)sales budget
• C)selling and administrative expenses budget
• D)expenditures budget

Understand the importance of only including relevant costs and benefits in project analysis.

Identify what constitutes an incremental cash flow for the purposes of capital budgeting.

Recognize that sunk costs and expenses not directly related to the project should not influence the project's cash flow analysis.

Recognize and calculate the impact of erosion when evaluating new projects.

---

Definitions:

Cross-hatching

A drawing technique used to create shading and texture by overlapping parallel lines at various angles.

Borders

Lines or bands that surround or delineate the edges of objects, pages, or elements in a design or document.

Rules

Established guidelines or instructions that govern behavior or procedure.

Source Acknowledgments

Source Acknowledgments are references or citations in a document or presentation that give credit to the original sources of ideas, information, or words.