Vidyalelo
Commerce · Q571

Costing

Graduate and Post Graduate · Commerce · question 571

Q571

Higher and accurate budgeted profit forecast of managers lead to

A.
high incentive bonus
Answer
B.
low incentive bonus
C.
influence bonus
D.
revenue bonus

Answer: Option A

Solution

Answer: Option A
Solution:
Higher and accurate budgeted profit forecast of managers lead to high incentive bonus. At the start of each fiscal period, the business owner prepares a budget based on projected revenue and the expenditure needed to realize that revenue.