Identify and describe three approaches to budgeting.
What will be an ideal response?
Zero-based budgeting is an approach to planning and decision making that starts at zero and requires a complete justification for every line item in a budget instead of carrying forward a prior budget and applying a percentage change. Many companies use top-down budgeting, which means that the budgeted amounts for the coming year are literally imposed on middle- and lower-level managers.Bottom-up budgeting involves lower-level managers anticipating their department’s budget needs and passing them up to top management for approval.
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The duality associations between the events in the generic conversion UML class diagram illustrate which of the following?
A. The participation of both supervisors and employees in the conversion process. B. The need for multiple raw materials to be included in the conversion process. C. The looping approach required for conversion processes that include multiple batches. D. The capture of actual material and labor costs for comparison with the original plan.
Cash flow yield is a
A) liquidity ratio. B) profitability ratio. C) long-term solvency ratio. D) market strength ratio.
A "bill and hold" scheme is most likely to include:
A. Billing of items that are held by customers for future revenue production purposes. B. Recording as sales items that the company retains as of year-end. C. Selling items at substantial discounts near year-end. D. Shipment of items to a customer beyond what the customer has ordered.
Independent regulatory agencies such as the Federal Trade Commission are
a. not part of the government's executive branch. b. outside the major departments of the government's executive branch. c. subagencies of executive agencies. d. subject to more executive authority than executive agencies.