Asked by Jason Rosete on May 27, 2024
Verified
The process of developing budget estimates by requiring managers to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as _____ budgeting.
A) flexible
B) continuous
C) zero-based
D) master
Zero-Based Budgeting
A budgeting approach where every expense must be justified for each new period, starting from a "zero base."
Budget Estimates
Financial predictions that outline expected income and expenditures for a specific period.
- Recognize and elucidate various budgeting techniques, such as continuous, zero-based, and master budgeting.
Verified Answer
KD
Kendall DimickJun 01, 2024
Final Answer :
C
Explanation :
Zero-based budgeting is a method where all expenses must be justified for each new period, starting from a "zero base," as if the operations were starting anew. This contrasts with traditional budgeting processes that adjust previous budgets to account for new circumstances.
Learning Objectives
- Recognize and elucidate various budgeting techniques, such as continuous, zero-based, and master budgeting.
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