A Budgeting Process That Involves Justifying Resource Requirements Based on an Analysis

question 10

Multiple Choice

A budgeting process that involves justifying resource requirements based on an analysis and prioritization of organizational objectives is called:

• A)continuous budgeting.
• B)zero-based budgeting.
• C)discretionary budgeting.
• D)single-period budgeting.

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Definitions:

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in utilizing its assets to generate sales or income, calculated by dividing net sales by the average total assets.

Dividends Per Share

The total dividends declared by a company for each share of its stock.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit customers, calculated by dividing net credit sales by average accounts receivable.

Days' Sales In Receivables

A financial ratio that measures the average number of days it takes for a company to collect payments from its credit sales.