In this type of control system, the master budget is based on a single prediction for sales volume, and the budgeted amount for each cost essentially assumes that a specific amount of sales will occur

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Business

Sammy Schneider

25 November, 06:02

In this type of control system, the master budget is based on a single prediction for sales volume, and the budgeted amount for each cost essentially assumes that a specific amount of sales will occur

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Killian Blanchard · Answer 1

Fixed budget, in a fixed budgetary control system, the master budget is based on a single prediction for sales volume or other activity level. The budgeted amount for each cost essentially assumes that a specific amount of sales will occur. A fixed budget, also called a static budget, is based on a single predicted amount of sales or other measure of activity.