Explain Why Organisations Use Budgeted Rates Instead of Actual Rates

question 83

Essay

Explain why organisations use budgeted rates instead of actual rates to allocate the costs of support departments to each other and to user departments and divisions.
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Grasp the extended product concept beyond its physical form.

Appreciate how brands influence consumer purchase decisions.

Understand the concept and elements of "actual product" attributes.

Identify and differentiate between product line, product mix, and their extensions.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulating banks, maintaining financial stability, and providing financial services.

New York Stock Exchange

A leading global financial exchange where stocks and other securities are bought and sold, located in New York City.

Excess Reserves

The reserves that banks hold over and above the regulatory requirements set by the central bank, often seen as a liquidity buffer.

Reserve Requirement

The reserve requirement is a central bank regulation that sets the minimum amount of reserves that must be held by a commercial bank, usually as a percentage of the bank's deposits.