Participative Budgeting Is an Approach to Budgeting That

question 96

Multiple Choice

Participative budgeting is an approach to budgeting that:

• A)is top-down in nature.
• B)allows top management to set the budget.
• C)discourages budget slack.
• D)is more likely to motivate people to work towards the organization's goals than a top-down approach.

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Definitions:

Maintenance Expenses

Costs incurred to keep an asset in working condition or to restore it to its operational status; these are necessary for ensuring the asset's longevity and efficiency.

Appraisal Value

Appraisal value is an estimation of the value of a property, usually performed by a professional appraiser, based on analysis and comparison to similar property transactions.

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specified rate of return.

Capital Cost Allowance (CCA)

A tax deduction that Canadian businesses can claim for the depreciation of tangible and intangible assets.