A Divisional Manager Is Given an Operating Budget of $3

question 96

Multiple Choice

A divisional manager is given an operating budget of $3.7 million for the coming year and is evaluated on the basis of the amount of output the division can produce based on that budget.On the basis of which of the following budget approaches is the divisional manager being remunerated?

• A) Revenue budget approach
• B) Cash flow budget approach
• C) Expense budget approach
• D) Profit budget approach
• E) Capital budget approach

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Definitions:

Benefit Audits

The process of reviewing and verifying the accuracy and compliance of an organization's employee benefits program with relevant laws, policies, and contracts.

Claiming Habits

Patterns or tendencies of individuals or groups in asserting or establishing their rights, entitlements, or possessions, often in legal or business contexts.

Defined Contribution Plan

A type of retirement plan in which the employer, employee, or both make contributions on a regular basis, but the final benefit received by the employee depends on the plan's investment performance.

Length of Service

The duration of time an employee has worked for a particular employer, often affecting their eligibility for certain benefits or recognition.