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3 years ago

Why is this zero based budget the best method of budgeting?

2 answers:

5 0

It helps you save a lot of money, if you are on zero budget you wont be as willing to spend money on non sense rather than if you were to have say a weekly budget to where you know how much money you can spend on non sense. hope that makes sense.

kherson [118]3 years ago

3 0

Zero based budget the best method of budgeting - Reason:

Zero-based budgeting (ZBB) is a budgeting method where all expenses of each new phase have to be justified. The zero-based budgeting process beginning at zero bases and each component is examined for its requirements and expenses within an organization.

Zero-based budgeting can help to reduce costs by preventing massive increases or reduced to expenditure for the subsequent period. But this has taken far more time than conventional cost-based budgeting. It’s a time-consuming process.

It is also a case of actual revenue because their contributions are easier to justify than in customer services and R&D departments.

You might be interested in

Chiller Company has credit sales of $5.60 million for year 2013. Chiller estimates that 1.32% of the credit sales will not be co

dsp73

Answer:

$59,045.80

Explanation:

The following information was missing:

Accounts Receivable total $1,565,170

Assuming the company uses the percent of accounts receivable method, what is the amount that Chiller will enter as the Bad Debt Expense in the December 31 adjusting journal entry?

total uncollectible debt = $1,565,170 x 4% = $62,606.80

since the account balance of the allowance for doubtful accounts is $3,561 (credit), the adjusting entry should be:

December 31, 2013, bad debt expense

Dr Bad debt expense (= $62,606.80 - $3,561) 59,045.80

Cr Allowance for doubtful accounts 59,045.80

7 0

3 years ago

A 4-year project has an annual operating cash flow of $48,000. At the beginning of the project, $3,900 in net working capital wa

tankabanditka [31]

Answer:

The Year 4 cash flow is $33,348.

Explanation:

The Year 4 is the last year of the project.

In this year we have:

- Income: +$48,000.

- Working capital recovery: +$3,900

- Equipment sale: +$5,460

- Equipment book value: -$4,380

To calculate the tax, we apply the tax rate to the income and to the sale profit (difference between the market value and the book value of the equipment):

$Tax=0.40*[48,000+(5,460-4,380)]\\\\Tax=0.40*(48,000+1,080)\\\\Tax=0.40*49,080=19,632$

- Tax: -$19,632

Then, we can calculate the Year 4 cash flow:

$CF_4=48,000+3,900+5,460-4,380-19,632=33,348$

4 0

4 years ago

Flint Co. has a held-to-maturity investment in the bonds of Schuyler Corp. with a carrying value of $76,700. Flint determined th

Sphinxa [80]

Answer:

The journal entry to record the reduction in value would be:

Account Title Debit Credit

Loss on Impairment 11,700

Debt Investments (Available-for-Sale) 11,700

$76,700 - $65,000 = 11,700

In this case, a loss has occurred and the individual security should be written down. If Flint Co. has already recognized an unrealized holding loss—equity, an additional entry is needed to reverse this amount as well as eliminate the fair value adjustment (available-for-sale) account.

5 0

3 years ago

In the example in the video, why would American companies be hurt when trying to sell goods in Europe affected?

diamong [38]

Answer:US goods would be more expensive

Explanation:

6 0

4 years ago

In the case below, the original source material is given along with a sample of student work. Determine the type of plagiarism b

IRINA_888 [86]

Answer:

The correct answer is letter "C": This is not plagiarism.

Explanation:

Plagiarism is the act of taking someone else's work and make it appear as if it belongs to another party. It also implies paraphrasing words from an article or changing the order of some of the words to give it a genuine look. Plagiarism is considered a misdemeanor but can be penalized.

The student's version in the example is not plagiarism because the source from where the student takes the reference of the elaboration theory is mentioned:

They soon switched to a model based on the elaboration theory (Reigeluth, 1999).

Thus, the student is recognizing that the conclusion was taken from another resource. The rest of the student's paragraph is related to another field of study - videogames - making a unique version only relating the theory.

7 0

3 years ago