The Most Widely Used Approach to Budgeting Operating Expenditures Is

question 34

Multiple Choice

The most widely used approach to budgeting operating expenditures is

• A) Zero-base.
• B) Performance approach.
• C) Object-of-expenditure.
• D) Program and planning-programming-budgeting.

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Definitions:

Process Cost System

An accounting system used to track costs in industries where production is continuous and processes are uniform, assigning costs to units of output.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of complete units of output.

Production Cost Report

A document that outlines the total cost and production data for a specific period, typically used in process costing systems.

Equivalent Units

A standardization method used in cost accounting to express production activity of various products in terms of a single, common 'equivalent unit'.