With Zero-based budgeting, each expenditure item must be justified for the new budget period. a. True b. False
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
6. With Zero-based budgeting, each expenditure item must be justified for the new budget period.
a. True
b. False
7. A deliberate effort to create “breathing room” within a budget is known as “padding the budget”
a. True
b. False
8. Some entities will follow a top-down participative approach to budgeting.
a. True
b False
9. “Responsibility accounting” is a concept under which managers are held accountable for transactions and events beyond their direct influence and control.
a. True
b. False
10. The
a. True
b. False
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