When a Division Manager Is Evaluated Based on the Difference

question 8

Multiple Choice

When a division manager is evaluated based on the difference between the revenues and cost figures of his or her division, this is an example of:

• A)a cash flow budget approach
• B)a capital budget approach
• C)a profit budget approach
• D)a revenue budget approach
• E)an expense budget approach

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Definitions:

Federal Unemployment

Refers to the United States federal government program that provides unemployment benefits to eligible workers.

FICA-OASDI

Refers to the Social Security portion of the Federal Insurance Contributions Act tax, used to fund the Social Security program in the United States.

Calendar Year

The 12-month period a business chooses for its accounting year. Alternatively known as fiscal year and natural business year.

State Unemployment Tax Rate

The rate at which employers are taxed by their state government to fund unemployment insurance benefits for laid-off workers.