Which One of the Following Is a Budgeting Process That

question 105

Multiple Choice

Which one of the following is a budgeting process that requires managers to prepare budgets based on in-depth reviews of all budget items?

• A) Flexible budgeting.
• B) Continuous budgeting.
• C) Activity-based budgeting (ABB).
• D) Kaizen budgeting.
• E) Zero-base budgeting (ZBB).

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Definitions:

Deferred Gross Profit-Year 1

This refers to the portion of gross profit on sales made in the first year that is not recognized immediately but is deferred to future periods under certain accounting methods.

Realized Gross Profit

The gross income that a company has earned and recognized from its sales or services, after accounting for the cost of goods sold, but before deducting operating expenses.

Installment Sales Revenue

Revenue recognized from sales that are paid in installments over a period, rather than in a single transaction.

Installment Sales Method

An accounting technique used to recognize revenue from sales made on credit, where income is recognized proportionally as payments are received.