Why Does a Company's Budget Need to Be Closely Linked

question 46

Essay

Why does a company's budget need to be closely linked to the needs of good strategy execution? Why might a change in strategy call for budget reallocations?

Differentiate between the accounts impacted in the perpetual inventory system.

Know how to record freight charges and merchandise purchases on credit under both systems.

Understand the implications of merchandise returns on account balances under the perpetual inventory system.

Familiarize with the necessity of a physical inventory under the periodic system and its absence in the perpetual system.

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