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what are the advantages of budgetary controlthis budgetary control system helps in fixing the goals for the organization as a whole and concerts
explain current budgetscurrent budgets the period of current begets is generally of months and weeks these budget relate to the current activities of
explain short term budgetsshort term budgets these budgets are generally for one or two years and are in the form of monetary termsthe consumers good
what is long term budgetslong term budgets the budgets are prepared to depict long term planning of the business the period of long term begets
explain operating budgetsthese budgets relate to the dissimilar activities or operation of a firm the number of such budgets depends upon the size
explain about programmed budgetit having expects revenues and cost of various products or projects that are termed as the main programmers of the
what is the responsibility of operating budgetwhen the operating budget of a firm is constructed in terms of responsibility areas it is called the
describe financial budgetsfinancial budgets financial budgets are concerned with cash receipts and disbursements working capital expenditure
what is master budgetfinancial budget are concerned with cash receipts and disbursements working capital several functional budgets are integrated
what is the flexible budgets a flexible budget consists of a series of budgets for different level of activity it therefore varies with the level
what is fixed budgetthe fixed budget is prepared for a given level of activity the budget is prepared before the beginning of the financial year if
state the factors of cvpthe three factors of cvp analysis i e cost volume and profit are interconnected and dependent on one another for example
cost volume profit analysismeaning and definitioncost volume profit analysis is a technique for studying the relationship between cost volume and
assumptions underlying the cvp analysiscvp analysis as discussed above is based on certain assumptions if these assumptions are not recognized then
techniques of cvp analysis the cvp analysis deals with the price costs structure and the sales volume and identifies the profit figure with
contribution margin analysis contributioncontribution is the difference between sales and variable cost or marginal cost of sales if may also be
what are the advantages of contributionmargin analysisthe concept of contribution is variable aid to management in making managerial decisions a few
explain the break-even analysis the study of cost volume profit analysis is often referred to as break-even analysis and the two terms are used
assumption of break even analysisthe break even analysis is based upon the following assumptions 1 all elements of cost ie production administration
algebraic method of the break even point the break even point can be computed by the following methoda units of sales volume b budget total or in
graphic method of break even analysis or break even chartthe break even point can also be computed graphically a break even chart is a graphical
how can we draw a break even chartunder this method the variable cost line is drawn first and then fixed cost line is drawn over and parallel to the
describe the method of drawing a break even chart 1 volume of productionoutput or sales is plotted on horizontal axis i e y - axis the volume of
what are the advantages or uses of break even chartscomputation of break even point or presentation of cost volume and profit relationship by way of
limitation of break even chartsdespite many advantages a break even chart suffers from the following limitations1 a break even chart is based upon a