Which of the Following Approvals Will Make the Most Effective

question 8

Multiple Choice

Which of the following approvals will make the most effective environment for budget acceptance?

• A)The budget is prepared by top management.
• B)The budget preparation contains input from all levels of management.
• C)The budget is prepared by the department heads.
• D)Acceptance has nothing to do with who prepares budgets.

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Definitions:

Fixed Product Cost

Costs associated with production that do not change with the level of output, such as salaries of permanent staff and depreciation of machinery.

Straight Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Income

The total profit or earnings after all expenses and taxes have been deducted from revenue.