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4 years ago

Different budgeting periods and explain each one

1 answer:

5 0

Budgeting period is an allocation of time to plan for your money and how or where it's gonna be used. There are two types of budgeting period: Short term and Long term.

Short-term Budgeting period

This budgeting period covers from 6 months to a year, depending on the nature of the business. For seasonal businesses, it should cover at least one seasonal cycle. For wholesale and retail businesses, 6 month is enough.

Long-term Budgeting Period

This covers more than a year of operating. It focuses on the futuristic performance of a business or company. Factors used are market trends, economic growth, inflation rates and industrial production. These factors help foresee profit or problems that may arise. Consequently, this will also help you in your present decisions.

You might be interested in

Which of the following would have no effect, either direct or indirect, on an organization's cash budget? None of the answers is

zalisa [80]

Outlays for professional labor, Sales revenues,Raw material purchases, Advertising expenditures all these will have either direct or indirect effect , on an organization's cash budget-So none of the answer is correct.

Explanation:

Lets try to understand the below mentioned concept:-

Outlays for professional labor: it refers to the cost that is incurred for the acquisition of a good (inventory )or service(consulting services)

Sales Revenue:It refers to the amount business gains/realise by the sale of its product or goods and services.
Raw Material Purchases: The cost incurred by the company to acquire its raw material
Advertising expense: The expense incurred by an y business house on the advertisement of its product.

Hence it is clear from the above discussion that all these expense have a direct or indirect effect on an organizations cash budget.

So the answer is None of these

5 0

3 years ago

Sales revenue$ 4,000Purchases of direct materials$ 400Direct labor$ 450Manufacturing overhead$ 620Operating expenses$ 650Beginni

Anna007 [38]

Answer:

A) $1,450

Explanation:

beginning finished goods + COGM = ending finished goods + COGS

to know COGS we need cost of goods manufactured

COGM = beginning WIP + cost added - ending WIP

to knwo COGM we need to know cost added

cost added = labor + materials + overehead

to know that we need to know materials used:

used into production= beginning raw+purchase - ending raw

used = 200 + 400 - 180 = 420

and now we go backwards in the loop to fill the blank and solve for COGS

cost added = 450 + 420 + 620 = 1490

COGM = 320 + 1490 - 410 = 1400

and we now return to the formula to find COGS

250 + 1400 = 200 + COGS

1650 - 200 = COGS = 1,450

6 0

4 years ago

Nathan started the first outlet of dynamix gym in new york city in 1995. the business expanded over time, and he became the owne

abruzzese [7]

Nathan is considered to be a franchiser. A franchiser is being defined as someone who owns an overaching company or trademarks and products in which they give a right to the franchisee to be able to run the franchise’s location in which is agreed with a fee.

3 0

3 years ago

Anton feels he needs to continue his relationship with his wife because if they broke up, it would be very costly for him financ

never [62]

Anton feels he needs to continue his relationship with his wife because if they broke up, it would be very costly for him financially and damage his business. Anton is showing Constraint commitment.

The desire to be together in the future—to have a lengthy time horizon for a relationship—is a key component of commitment.

Long-term relationship commitment has a significant impact on people's relationship behaviors, encouraging them to act in the couple's best interests rather than their own immediate self-interest.

One of the major advantages of taking a long-term perspective in partnerships like marriage is that the connection is assessed based on a longer time frame rather than just what is happening right now.

A here-and-now perspective would place a lot of pressure on the present exchange of positives and negatives as the basis for judging the relationship because few relationships are consistently gratifying.

To learn more about Constraint Commitment here

brainly.com/question/17156848

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7 0

2 years ago

Calculate the future value of the following annuity streams: a. $8,000 received each year for 6 years on the last day of each ye

morpeh [17]

Answer:

We will derive the amount of Future values with the aid of financial calculator:

a. Future value = FV (Pv, -Pmt, N, I)

Future value = FV (0, -8000, 6, 7%)

Future value = $57,226.33

b. Future value = FV (Pv, -Pmt, N, I)

Future value = FV (0, -8000, 6*4, 7%/4)

Future value = FV (0, -8000, 24, 1.75%)

Future value = $236,088.13

c. For this case, we need to put the financial calculator at BEGIN mode

Future value = FV (Pv, -Pmt, N, I)

Future value = FV (0, -8000, 6, 7%)

Future value = $61,232.17

d. For this case, we need to put the financial calculator at BEGIN mode

Future value = FV (0, -8000, 6*4, 7%/4)

Future value = FV (0, -8000, 24, 1.75%)

Future value = $240,219.67

5 0

3 years ago