The Process of Developing Budget Estimates by Requiring Managers to Estimate

question 160

Multiple Choice

The process of developing budget estimates by requiring managers to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as _____ budgeting.

• A)flexible
• B)continuous
• C)zero-based
• D)master

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Definitions:

Profit-maximizing Level

The output level at which a business achieves the highest possible profit, found where marginal cost equals marginal revenue.

Total Costs

The complete amount of expenses incurred by a business, combining both fixed and variable costs associated with production.

Inputs Prices

Prices of goods or services that are used in the production of other goods or services.

Profit-maximizing

The process or strategy of adjusting production and sale operations to achieve the highest possible profit.