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Why is it relevant to calculate the fixed cost budget? * 2 points Management must...

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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.

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