The Budgeting Approach That Focuses on Relating Levels of Particular

question 169

Multiple Choice

The budgeting approach that focuses on relating levels of particular inputs to expected levels of production is best described as

• A) The participatory approach
• B) The incremental approach
• C) The zero-based approach
• D) The input-output approach

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Definitions:

Income Summary

An account in the ledger that aggregates all income and expense accounts to determine the net profit or loss for a certain period.

Revenue Accounts

Accounts that track the income generated from a company's primary operations and activities.

Expense Accounts

Financial accounts used to track money spent or costs incurred by a business in its operational activities.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, thereby preparing the books for the next period.