Which of the Following Should the Organization Use to Initiate

question 125

Multiple Choice

Which of the following should the organization use to initiate a budget?

• A)Last year's budget
• B)Last year's actual amounts
• C)Zero-based budgeting
• D)Any of the above

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Definitions:

Machine Hours

The total operating time of machinery used in the production process during a specific period.

High-low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Fixed Cost

Expenses that do not change regardless of the production volume, including rent, salaries, and insurance premiums.

Machine Hours

A measure of the amount of time a machine is operated, used in costing and operational efficiency calculations.