A Bottom-Up Budget Approach Is Also Referred to as

question 194

Multiple Choice

A bottom-up budget approach is also referred to as

• A)participative budgeting.
• B)imposed budgeting.
• C)responsibility budgeting.
• D)none of these answer choices are correct.

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Definitions:

Gross Margin Ratio

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, illustrating how effectively a company uses labor and supplies in production.

Gross Profit

The difference between revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.

Gross Margin

The difference between sales revenue and the cost of goods sold, representing the financial health of a company’s core activities.

Net Sales

The amount of revenue generated from goods or services sold after deducting returns, allowances, and discounts.