Exam 6: Budgeting and Loss Calculation in Cost Accounting

……….is the consolidated summary of the various functional budgets.

…………………budget is the preparation of budget starting from a clean state.

…….is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlierperiod.

…………..budget is designed to remain unchanged irrespective of the volume of output or turnover attained.

…………………budget is the most important budget and it forms the basis on which all the other budgets are built up.

………budget gives an estimate of the anticipated receipts and payment of cash during the budget period.

…………is a summary of all function budgets in a Capsule form.

Budgeting system…................ key managerial functions. School of Distance Education Cost Accounting Page 20

The budget relating to.................... must be prepared first and the other budgets should be prepared in the light of that factor.

……….budget gives differentbudgeted costs for different levels of activity.

…….budget may be classified into material cost budget, labour cost budget and overhead budget.

An input of 5000kg of material introduced into the process and the expected loss is 8% and if the actual output from the process is 4300, the abnormal loss is................. kg