A Young Woman Wins $150,000 and Buys 5 New Cars

question 96

Multiple Choice

A young woman wins $150,000 and buys 5 new cars. She chooses from cars that are priced at $40,000, $30,000, and $25,000 and spends all of the money. How many $25,000 cars did she buy?

• A) 0, 1, 2, or 3
• B) 0
• C) 6
• D) 0 or 2

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Definitions:

Activity-Based Budgeting

A budgeting approach that considers the underlying activities and costs as the bases for budgets, focusing on cost drivers.

Non-Value-Added Activities

Processes or actions that do not add value to the product or service from the customer's perspective, potentially leading to unnecessary costs.

Rolling Budgets

A financial planning method that continuously updates by adding a new budget period as the current period is completed, ensuring a constant planning horizon.

Continuous Budgeting

A method of budgeting that continuously updates the financial budgets by adding a new period (month, quarter, etc.) as the current period is completed, allowing for near continuous financial planning.