The financial budget of a merchandising company is similar to that of a manufacturing company.

Question

Quizplus · Accepted Answer

Both a merchandising and a manufacturing company need to prepare a financial budget to forecast and plan their future financial activities, including revenue, expenses, cash flow, capital expenditures, and financing arrangements. However, there may be some differences in the budgeting process and the types of costs involved, depending on the nature of their business operations.

The Financial Budget of a Merchandising Company Is Similar to That