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

Question

Business

Annabella

21 May, 02:03

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

+2

Answers (1)

Know the Answer?

Tristen Hays · Answer 1

Fixed budget, in a fixed budgetary control system, the master budget is based on a single prediction for sales volume or other activity level. The budgeted amount for each cost essentially assumes that a specific amount of sales will occur. A fixed budget, also called a static budget, is based on a single predicted amount of sales or other measure of activity.