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Elena L [17]
3 years ago
7

In this type of control system, the master budget is based on a single prediction for sales volume, and the budgeted amount for

each cost essentially assumes that a specific amount of sales will occur:
a. Sales budget.

b. Standard budget.

c. Flexible budget.

d. Fixed budget.

e. Variable budget.
Business
1 answer:
HACTEHA [7]3 years ago
5 0

Answer:

fixed budget

Explanation:

A fixed budget, also known as a constant budget, refers to a financial plan predicated on the idea that during a time similar quantities of goods are sold. In other terms, a specified amount of sales or profits is focused on predetermined budgets.

This is a simple way for executives to schedule costs and expenditures when they expect that over a period of time volume of sales and total income will be a fixed amount.

For some businesses, a flat budget has some benefits. Because of their convenience, fixed budgets are quick and easy to make, allowing management to concentrate on tasks rather than analyzing them. Flat budgets are indeed valuable in enterprises with annual patterns that are consistent.

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Explanation:

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                                               Cash Account

Debit                                                                                       Credit

Date/Number                Amount ($)            Amount ($)          Date/Number

Jan. 2018 (Beginning)    $20,500        

<u>1. Overall                           45,000                 35,000               1. Overall</u>

Balance, December        $30,500 (See note for calculation)

2018

Note:

1. Beginning cash + Debit balances - Credit balances = Ending balance

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