The Starting Point for Program Budgeting Is Last Year's Expenditure

question 19

True/False

The starting point for program budgeting is last year's expenditure.

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Definitions:

Equipment Depreciation

The process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value due to use, wear and tear, or obsolescence.

Supervisory Expense

Costs associated with managerial or oversight activities within an organization, typically involving salaries and benefits of supervising staff.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities related to production.

Overhead Cost

The ongoing expenses incurred in operating a business that are not directly associated with the production of goods or services, including rent, utilities, and salaries of non-production staff.