Which of the Following Is Not a Characteristic of a Top-Down

question 11

Multiple Choice

Which of the following is not a characteristic of a top-down budget environment?

• A)Executive management creates the budget.
• B)This approach is referred to as participative budgeting.
• C)The budget is pushed down through the organization.
• D)All of these ans choices are characteristics of a top-down budget environment.

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Definitions:

Traditional Costing Systems

Costing methods that allocate overhead costs based on a predetermined rate, often using direct labor hours or machine hours as the allocation base.

Activity-based Costing System

An activity-based costing system is an accounting method that assigns costs to products or services based on the activities and resources that go into production, providing more accurate cost information.

Measuring Ingredients

Measuring Ingredients involves quantitatively determining the proportions of various components that go into a product, critical in both cooking and manufacturing.

Batch Level Activities

These activities involve costs incurred for every batch produced, regardless of the volume of units in the batch.