The Budgeting Process That Involves Adding a Month to the End

question 118

Multiple Choice

The budgeting process that involves adding a month to the end of the budget period at the end of each month,thus maintaining a twelve-month planning horizon,is referred to as:

• A) participative budgeting.
• B) capital budgeting.
• C) continuous budgeting.
• D) zero-based budgeting.

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Definitions:

Apparent Authority

A situation in which a person appears to have been given the power by another party to act on their behalf, leading third parties to reasonably believe that authority exists.

Partnership Agreement

A contract among business partners detailing the business structure, distribution of profits and losses, and rules for the partnership's governance and operation.

Formal Resolution

An official decision or declaration adopted by an organization or assembly through a formal process.

Nontrading Partnership

A partnership focused on activities other than buying and selling goods, such as investment or professional services.