A Budgeting Technique That Requires Managers to Justify All Revenue

question 83

Multiple Choice

A budgeting technique that requires managers to justify all revenue and expenses for each new period is called ________.

• A) zero-based budgeting
• B) justification budgeting
• C) flexible budgeting
• D) defensive budgeting

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Definitions:

Savings

The portion of an individual's or entity's income that is not spent on current expenditures and is instead reserved for future use or investment.

Disposable Income

Money available to families for savings and expenses after accounting for income taxes.

C+ I

An economic term representing total consumption (C) and investment (I) in an economy, key components of the gross domestic product (GDP).

Disposable Income

The amount of money that households or individuals have available for spending and saving after income taxes have been accounted for.