Budgeting Aids Planning and Controlling the Level of Both Fixed

question 72

Essay

Budgeting aids planning and controlling the level of both fixed costs and variable costs.
Required:
Explain the differences,if any,between the planning and controlling of fixed costs and variable costs.

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Definitions:

Security Interest

A security interest is a legal claim or right granted by a borrower to a lender as collateral for a loan, securing payment or performance of an obligation.

Perfection

Perfection is a legal process that establishes a secured creditor's interest in a debtor's collateral, making it legally enforceable against third parties.

Collateral

Property or assets that are pledged as security for the repayment of a loan, subject to seizure on default.

Consensual Secured Transaction

A financial agreement where both parties agree to the deal, and collateral is provided to secure the transaction.