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- Which of the following statement(s) is/are true about the budget slack?(Select the correct answer from those listed below the following statements). (1) Budget slack is the deliberate under -estimation of costs and over- estimation of revenue (2) Budget slack is the difference between the budgeted, and the actual units of production (3) Budget slack is the deliberate over -estimation of costs and under- estimation of revenue (4) Budget slack is the deliberate falsification of costs and revenues by managers, which is deemed unethical
- The following figures have been taken from the budget of a company called Herts & Ford International Services Ltd, in the retail trade for the year ended 31 December 2021 January February March April Sales (units) 10,000 11,000 12,000 10,000 The following information is available: (i) The selling price per unit is E9 It will increase to E9.50 per unit from April and in subsequent months. 25% of budgeted sales revenue is expected to be received in the month of sale. 70% of budgeted sales in the following month, while 5% of budgeted sales are expected to result in bad debts. (ii) The budgeted number of units in inventory at the end of each month is equal to the budgeted sales for the following month. (iii) The business is seasonal, and, as indicated in the above budget.results in April are expected to be similar to those in January. There is a three-month cycle, so the results in May and June are expected to be similar to those in February and March respectively. Select the correct answer from the drop down list What is the total amount of cash collected in the month of March?
- Question 4 Which of the following statements is true? Select the correct answer from the options below Budgets can be too focused on costs Budgets do not focus primarily on sales Budgets focus on the management's ethnicity Budgets focus mostly on pricing 4 pts
- The following information is available: (i) The selling price per unit is f9 It will increase to UND9.50 per unit from April and in subsequent month: 25% of budgeted sales revenue is expected to be received in the month of sale. 70% of budgeted sales in the following month , while 5% of budgeted sales are expected to result in bad debts. (ii) The budgeted number of units in inventory at the end of each month is equal to the budgeted sales for the following month. (iii) The business is seasonal, and, as indicated in the above budget.results in April are expected to be similar to those in January. There is a three-month cycle, so the results in May and June are expected to be similar to those in February and March respectively. Select the correct answer from the drop down list. What is the total amount of cash collected in the month of March? £95,600 £97,500 £78,500 £96,300
- Question 3 The following extract is taken from the sales budget for UHertz Plc: Sales activity 50% 70% Budgeted Production units £188,000 E263,200 What is the production budget for a sales activity level of 85% Select the correct answer from the options below E319,600 £456,500 E287,400 £235.900 4 pts