Managerial accounting information include, both historical and estimated at a. Variable costs are costs that vary in total in direct proportion to change, in the activity level. The point in operations at which revenues and expired costs are exactly equal is called the break-even point A budget procedure that provides for the maintenance at all times of a twelve-month projection into the future it called master budgeting Conversion cost is the combination of direct labor cost and factory overhead cost. Any difference between the fair market values of the securities and their cost is a gain or loss. Direct labor costs are included in the conversion costs of a product. Budgets are prepared in the Accounting Department and monitored by various department managers. If the bonds are purchased between interest dates, the purchase price includes accrued interest since the last interest payment After the sales budget is prepared, the capital expenditures budget is normally prepared next. An equity investment in less than 20% of another company's stock is accounted for using the cost method The flexible budget is, in effect, a series of static budgets for different levels of activity. Conversion costs are the combination of direct labor, direct material and factors overhead costs. Budgets are normally used only by profit-making businesses. Investment in Bonds is listed on the balance sheet after Bonds Payable. Managerial accounting reports must be useful to the user of the information. The budgeting process is used to effectively communicate planned expectations regarding expenses to the entire organization