5

which of the following statements about monthly budget preparation is incorrect?

a)in case of short term contracts, the relationship between the variable cost and earnings shown on the annual budget is applied to each monthly budget

b)same procedures are used to forecast monthly revenue and cost regardless of the nature of the contract or cost

c)in case of short-term contracts, companies must rely on past history to forecast earnings for each month

d)the fixed cost on the annual budget is divided by 12 to determine monthly fixed cost