When Estimating Expenses for a Budget

question 82

Multiple Choice

When estimating expenses for a budget,

• A)last month's and last year's expenses are not a good starting point.
• B)many of the same expenses do not occur each month.
• C)large unusual expenses such as car or hospital bills should not be included.
• D)estimating your future assets is a good starting point.

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Definitions:

Setup Cost

The expenses incurred when preparing equipment, machinery, or systems for a new production run or switching from producing one item to another.

Kanban Size

The specific quantity of work components or tasks represented by a Kanban card, used in the Kanban system to control the flow through the production system.

Setup Cost

The expense incurred to prepare equipment, machinery, or a production facility for a manufacturing run or a project.

Carrying Cost

The total cost of holding inventory, including storage, insurance, depreciation, and opportunity costs.