A Budget That Is Created by Starting with the Work

question 7

Multiple Choice

A budget that is created by starting with the work breakdown structure,determining costs for each work package,and then adding these costs together is:

• A)zero-based budgeting.
• B)top-down budgeting.
• C)bottom-up budgeting.
• D)activity-based budgeting.

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Definitions:

IFRS

International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that outline how financial statements should be prepared and disclosed.

Straight-Line Depreciation

A method of calculating the depreciation of an asset which allocates an equal portion of the asset's cost over each year of its useful life.

Useful Lives

The estimated period during which an asset is expected to be usable for the purpose for which it was acquired.

Revaluation Surplus

An increase in the carrying amount of an asset to its fair value, exceeding its previously recorded nominal value, recognized directly in equity.