QuestionAugust 15, 2025

True or false: Comparison of the actual and budgeted expenses in the income statement can be helpful for new ventures where there are multiple products or services. True False

True or false: Comparison of the actual and budgeted expenses in the income statement can be helpful for new ventures where there are multiple products or services. True False
True or false: Comparison of the actual and budgeted expenses in the income statement can be helpful for new ventures where there are multiple products or services.
True
False

Solution
3.5(328 votes)

Answer

True Explanation 1. Understand the purpose of comparison Comparing actual and budgeted expenses helps identify variances, which is crucial for managing costs and improving financial performance. 2. Consider applicability to new ventures New ventures with multiple products or services benefit from this comparison as it aids in understanding profitability and resource allocation.

Explanation

1. Understand the purpose of comparison<br /> Comparing actual and budgeted expenses helps identify variances, which is crucial for managing costs and improving financial performance.<br />2. Consider applicability to new ventures<br /> New ventures with multiple products or services benefit from this comparison as it aids in understanding profitability and resource allocation.
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