What is an incremental budget
Questions:
1. How are adverse and favourable variances calculated?
2. What is a line item budget?
3. What is an incremental budget?
4. What is zero-based budgeting?
5. What is an output-based budget (programme budget)?
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The project has a payback of 2.5 years, and the firm's cost of capital is 12%. What is the project's NPV?
Show that the bias due to the replacement of µ by x¯ n is of the order of a X2n term, which can thus be corrected directly in dn.
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How are variable overhead cost variances calculated? How are fixed overhead cost variances calculated??
How are adverse and favourable variances calculated? What is a line item budget? What is an incremental budget?
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Why do firms hold cash balances? Why do some firms hold larger cash balances than other firms?
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