Q1. Give reasons why you need a budget. Have you ever been involved in the budget process at your organization/or at home? If so, describe your role and responsibilities. What aspects of the budget process might you change where you work or at home, if you had the opportunity?

Answer:

Q2. Aldene Company, which has only one product, has provided the following data concerning its most recent month of operations:

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Required:

a. Prepare a contribution format income statement for the month using variable costing.

b. Prepare an income statement for the month using absorption costing