Budgeting Can Be Used in an Organisation To

question 16

Multiple Choice

Budgeting can be used in an organisation to:

• A) motivate managers to achieve organisational goals.
• B) control operations.
• C) provide managers with information for making decisions and planning.
• D) All of the given answers

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overheads, representing the expenses to convert raw materials into finished goods.

Factory Overhead Costs

Expenses related to the operation of a factory that are not directly linked to a specific product, such as maintenance, utilities, and salaries of supervisory staff.

Direct Material

The raw materials that are used directly in manufacturing a product and can be easily traced to the final product.

Factory Overhead

Indirect costs incurred during the manufacturing process, not including direct materials or direct labor.