One Characteristic of Incremental Budgeting Is That It

question 39

Multiple Choice

One characteristic of incremental budgeting is that it

• A)allows comparison using various units, like labor hours and dollars.
• B)is flexible towards changing environmental demands.
• C)locks managers into stable spending arrangements.
• D)allows easy comparison of different departments doing different activities.
• E)requires more time from managers than zero-based budgeting.

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Definitions:

Legal Fees

Costs charged by lawyers for their services.

Subscription Price

The fee charged to customers for accessing a product or service for a specified period, typically recurring monthly or annually.

Rights Offering

A process by which a company offers its existing shareholders the opportunity to buy additional shares at a discounted price before the new shares are offered to the public.

Market Price

The contemporary price at which the market allows an asset or service to be bought or sold.