Prenora Inc

question 112

Multiple Choice

Prenora Inc., a newly established company, is set to prepare its first budget. The top management of the company decides to use a budgeting approach that will seek active participation from the middle and supervisory managers of the company. In the given scenario, Prenora Inc. will most likely use the _____ to budgeting.

• A) top-down approach
• B) incremental approach
• C) bottom-up approach
• D) zero-based approach

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Definitions:

Labor

The effort that people contribute to the production of goods and services in an economy, typically measured in terms of hours worked.

Production Function

A mathematical equation that describes the maximum amount of output that can be produced from a given set of inputs.

Labor Input

This denotes the amount of work effort, measured in hours or the number of employees, used in the production of goods and services.

Techniques of Production

The various methods and technologies used in the process of producing goods and services.