Which of the Following Is Not a Guideline for Budget

question 45

Multiple Choice

Which of the following is not a guideline for budget preparation?

• A)Revise budget to include planning decisions
• B)Know the sources of budget information
• C)Limit the use of a budget to one user group
• D)Establish the format of the budget

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Definitions:

Process Costing System

An accounting method used for homogeneous products, where costs are assigned to processes or departments and averaged over the units produced.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all goods available for sale.

Finished Goods

Items that have been fully produced but are still awaiting sale or distribution to buyers.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all units available for sale during the period.