The Envelope Method Is One of the Alternative Budgeting Strategies

question 135

Multiple Choice

The envelope method is one of the alternative budgeting strategies to

• A)make sure you have the cash you need without accruing debit card charges.
• B)manage those expenses that you are not able to pay in cash.
• C)manage those expenses that are the hardest to control.
• D)manage those expenses that you are not able to pay by credit card.

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Definitions:

Current Distribution Plans

Strategies and methods used by businesses to allocate resources, goods, or services to customers or other areas of the business in the present moment.

Escrow Account

A financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.

Profit Sharing Plan

A compensation structure where employees receive a share of the company's profits, usually allocated as part of their annual income.

Scanlon

A participative management approach that focuses on employee involvement in problem solving and decision making related to productivity improvement and cost reduction.