The Objectives of Budgeting Are (1) Establishing Specific Goals for Future

question 52

True/False

The objectives of budgeting are (1) establishing specific goals for future operations, (2) executing plans to achieve the goals, and (3) periodically comparing actual results with these goals.

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Definitions:

Cost

An amount that must be paid or spent to buy or obtain something, often related to the production or purchase of goods and services.

Merchandise

Merchandise refers to goods or products that are purchased, stored, and sold by businesses to generate revenue.

Net Purchases

The total amount of purchases made by a company after subtracting returns, allowances, and discounts.

Merchandise Available

The total goods available for sale during a certain period, including both beginning inventory and purchases made.