The Use of Activity-Based Budgeting Is Growing Because of ________

question 119

Multiple Choice

The use of activity-based budgeting is growing because of ________.

• A) the increased use of activity-based costing
• B) the increased use of kaizen costing
• C) increases in work-in-process inventory
• D) increases in direct materials inventory

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Definitions:

Credit Analysis

The process of evaluating an individual's or an organization's ability to repay debt obligations based on their financial stability and history.

Terms Of Sale

The conditions agreed upon by the buyer and seller regarding the delivery, payment, and other elements of a purchase transaction.

Credit Instrument Captive Finance Company

refers to a financial subsidiary company operated by a parent company primarily to provide financing for the sales and leasing of their products by offering credit to its customers.

Operating Cycle

The period it takes for a business to buy inventory, sell products, and collect cash from customers, essentially measuring the time between purchasing materials and receiving cash from sales.