o (Click the icon to view the budgets and budget types.) Which budget or budget

ID: 2571162 • Letter: O

Question

o (Click the icon to view the budgets and budget types.) Which budget or budget type should be used to meet the following needs? B Budget and budget typesX a. Upper management is planning for the next five years b. A store manager wants to plan for different levels of sales e. The accountant wants to determine if the company will have Cash Flexible Operational Static Cost of Goods Sold Master Sales sufficient funds to pay expenses d. The CEO wants to make e plans for the next year. Print Done Choose from any drop-down list and then continue to the next question.

Explanation / Answer

Solution:

Upper management is planning for the next five years

Strategic Budget

A store manager wants to plan for different level of sales

Flexible Budget

The accountant wants to determine if the company will have sufficient funds to pay expenses

Cash Budget

The CEO wants to make companywide plans for the next year

Master Budget

Strategic Budget --- The strategic budget lays out the direction and goals of the business and guidelines for actions to achieve those goals.

Flexible Budget – It is a budget that adjusts or flexes for changes in the volume or level of activity.

Cash Budget – It is an estimation of the cash inflows and outflows for a business over a specified period of time and this budget is used to assess whether the entity has sufficient cash to operate.

Master Budget --- This budget produces various functional area of the company.

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