Which Budgeting Systems Are Primarily Concerned with Output and the Cost

question 21

Multiple Choice

Which budgeting systems are primarily concerned with output and the cost of output?

• A) Incremental and flexible budgeting
• B) Flexible and program budgeting
• C) Flexible and zero-base budgeting
• D) Zero-base and program budgeting
• E) Activity-based and incremental budgeting

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Definitions:

Overapplied

When the overhead cost allocated to products exceeds the actual overhead costs incurred, requiring adjustment.

Underapplied

A situation where the actual manufacturing overhead costs are higher than the amount allocated to products.

Job-Order Costing System

A job-order costing system is an accounting method that tracks and accumulates costs for individual jobs or batches, which are distinct and can be separately identified.

Overapplied

A term used in accounting when the allocated overhead costs are more than the actual overhead costs incurred.