A Budget Is Defined as

question 36

Multiple Choice

A budget is defined as

• A)the qualitative expression of a plan.
• B)an aid in controlling income.
• C)the quantitative expression of a plan of action by management.
• D)the quantitative expression of a plan and an aid in controlling income.
• E)an aid in coordinating and implementing a plan.

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Definitions:

Incidental Costs

Incidental costs refer to minor or secondary expenses that are not planned for but occur in the course of conducting business.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.

Current Costs

The cost associated with purchasing goods or services in the present time, often used in accounting to refer to the cost of inventory or services consumed.

Weighted Average Method

An inventory costing method that assigns a cost to inventory items based on the weighted average cost of all similar items purchased or produced during a period.