Large Organisations Such as Rio Tinto,WMC and the Commonwealth Bank

question 93

Multiple Choice

Large organisations such as Rio Tinto,WMC and the Commonwealth Bank assign financial analysts to work exclusively on developing __________ and monitoring whether actual __________ is going according to plan.

• A) financial budgets; cash expenditure
• B) capital budgets; capital expenditure
• C) cash budgets; gross expenditure
• D) expense budgets; net expenditure
• E) None of these choices.

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Definitions:

Base Period

A specific time period used as a comparison point for assessing economic or financial data across different periods of time.

Variable Costing

An accounting method that only includes variable costs, such as materials and labor, in the cost of goods sold and excludes fixed overhead costs.

Direct Costing

A method in managerial accounting that includes variable costs directly attributable to the production of a product in the cost of goods sold, excluding fixed costs.

Full Costing

An accounting method that includes all direct and indirect costs in the price of a product or service.