By appropriately preparing a forecast budget, a company can avoid . a net loss inventory shortages insolvency regulation

insolvency

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.

The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.

A specialized budget can be defined as a financial plan that is typically focused on specific assets or activity of a master (comprehensive) budget.

In conclusion, by appropriately preparing a forecast budget, a company can avoid insolvency.

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total