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3 years ago

Which step of formulating a financial budget involves using forecasting techniques to help predict revenue?

Business

1 answer:

Tamiku [17]3 years ago

6 0

Answer: The correct answer is (A): planning and gathering financial information.

Explanation: Forecasting technique is used while planning and gathering financial information. This step helps in predicting revenue. Formulation of financial budget depends on the size and type of the business. This information is used by organization for developing their budgets. It helps to forecast the future, anticipate risks and prevent them.

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A machine costing $450,000 with a four-year life and an estimated $30,000 salvage value is installed by Lux Company on January 1

Tasya [4]

Answer:

$112,500

Explanation:

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)

Depreciation expense in year 1 = 2/4 x $450,000 = $225,000

Book value at the beginning of year 2 = $450,000 - $225,000 = $225,000

Depreciation expense in year 2 = 2/4 x $225,000 = $112,500

4 0

2 years ago

Financial statements are optional accounting reports issued periodically by a firm which present information on the past perform

goldfiish [28.3K]

Answer:

False

Explanation:

Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.

These documents play a pivotal role in a financial institution, thus, not optional.

Cheers

7 0

2 years ago

Read 2 more answers

As little as _______ percent of privately owned businesses ever move from the start-up stage to the success stage.

melomori [17]

The answer is D: 6% of these businesses

8 0

2 years ago

Read 2 more answers

On the basis of this information, what were total maintenance costs when the company experienced 23,000 machine hours of activit

spayn [35]

Answer:

Results are below.

Explanation:

First, we need to calculate the total cost for each activity level:

High activity level= 27,000*27.3= $737,100

Low activity level= 23,000*34.3= $788,900

Now, using the high-low method, we can determine the variable and fixed costs:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (788,900 - 737,100) / (27,000 - 23,000)

Variable cost per unit= $12.95 per machine-hour

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 788,900 - (12.95*27,000)

Fixed costs= $439,250

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 737,100 - (12.95*23,000)

Fixed costs= $439,250

Finally, for 25,000 hours:

Total cost= 439,250 + 12.95*2,5000

Total cost= $763,000

8 0

3 years ago

An increase in the demand for peanut butter could be caused by a(n)

Serggg [28]

I’d say D because its being demanded more of

8 0

2 years ago