Question

Which budget or budget type should be used to meet the following​ needs? a. Upper management is planning for the next five years. b. A store manager wants to plan for different levels of sales. c. The accountant wants to determine if the company will have sufficient funds to pay expenses. d. The CEO wants to make companywide plans for the next year.

Answer 1

Answer:

a. A Strategic budget will be used by the upper management in planning for the next five years.

b. A flexible budget will be used by a store manager who wants to plan for different levels of sales.

c. A Cash budget will be used by an accountant who wants to determine whether the company has sufficient funds to cover expenses.

a. A Master Budget will be used by a CEO who wants to make companywide plans for the next year.

Explanation:

• Strategic budget, is finnancial planing to achieve the long term goals of the company.

• flexible budget is used for different level of sales volume.

• Cash budget usted for forescast the cash balance.

• Master Budget uses a schedule to present financial statements.