________ Is a Major Part of a Master Budget That

question 74

Multiple Choice

________ is a major part of a master budget that focuses on the income statement and its supporting schedules.

• A) Operating budget
• B) Financial budget
• C) Continuous budget
• D) Strategic plan

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Definitions:

Implicit Costs

Costs that represent the value of resources used in production for which no direct payment is made.

Explicit Costs

Direct, out-of-pocket payments a firm makes to purchase the inputs it needs for production, such as wages, rent, and materials.

Calendar Time

The concept of time as measured by calendar units, such as days, months, and years, used in planning and scheduling.

Long Run

An economic phase where all elements of production and expenses can fluctuate, enabling complete adaptation to any alterations.