Why is it relevant to calculate the fixed cost budget? * 2 points Management must...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Why is it relevant to calculate the fixed cost budget?
*
2 points
Management must account for these fixed costs as part of their monthly expenses.
Management usually forecast the fixed costs based on past financial records and take into account potential rate increase of these fixed costs on a monthly basis.
Without budgeting fixed cost into the income statement, you wont be able to calculate the net profit.
All the above.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
