Question 1 Introduction
Management accounting can be used for setting prices for products.
Management accounting can be used for setting prices for products.
Responsibility for each budget is given to budget holders, so they can plan, make decisions and control costs.
A sales budget is used to ensure that the business sells an identical quantity of products and revenue in each budget period.
In a production budget, the production units for each budget period are calculated as sales, plus opening inventory, less closing inventory.
The use of a labour budget allows any surplus or shortfall of labour hours to be identified.
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