Question
A. You are given the following information related to ABC manufacturing company Month BudgetedSales March $200,000 April 212,000 May 204,000 June 218,000 July 210,000 In
A. You are given the following information related to ABC manufacturing company
Month BudgetedSales
March $200,000
April 212,000
May 204,000
June 218,000
July 210,000
In addition, the gross profit rate is 40% and the desired inventory level is 30% of next month's cost of sales.
Required: Prepare a purchases budget for April through June.
B 1. Explain the concept of responsibility accounting and its relation with budgeting.
2. Explain how the choice of the type of responsibility center (cost, revenue, profit, or investment) affects behavior.
3. Discuss the concept of budgetary slack
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started