Pauline Is an Area Manager at Ironman Gym

question 87

Multiple Choice

Pauline is an area manager at Ironman Gym. She anticipates her area's needs and formulates a proposed budget every quarter. She then sends this proposal to her manager. This is an example of:

• A) top-down budgeting.
• B) strategic budgeting.
• C) revenue budgeting.
• D) bottom-up budgeting.
• E) none of these.

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Definitions:

Voluminous Paperwork

Refers to an overwhelming amount of paperwork or documents that are often complex and extensive.

Fixed Budget

A budget that sets forth expected revenue, expenses, and profit for a company over a specific period, based on the assumption of a fixed level of activity.

Flexible Budget

A financial plan that shifts in response to alterations in activity or volume.

Overhead Costs

Expenses not directly attributable to the production of goods or services, such as rent, utilities, and administration.