One of the Approaches to Setting Budgets Is Known as the 'Top

question 7

Multiple Choice

One of the approaches to setting budgets is known as the 'top down' approach. This is best described as:

• A)production budget set first and working from this to other budgets.
• B)budget targets set at the lowest level of management.
• C)setting the sales forecast and working from this to other budgets.
• D)budget targets set by senior management.

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Definitions:

Legislative Regulations

are rules made by a government or regulatory body that have the force of law.

Progressive Rate Structure

A tax system where the tax rate increases as the taxable amount increases, resulting in those with higher incomes paying a higher rate of tax on their income.

Federal Income Tax

A tax levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities, based on their income levels.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.