The Starting Point in Developing a Budget Based on Zero-Based

question 78

Multiple Choice

The starting point in developing a budget based on zero-based budgeting is _____.

• A)last year's budget
• B)zero
• C)a competitor's budget
• D)the budgeted expense amount that maximizes profits

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Definitions:

Stockholder

An individual or entity that owns shares in a corporation's stock, giving them a claim on parts of the corporation’s assets and earnings.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; also known as shareholder's equity.

Cash Dividend

A distribution of a company's earnings to its shareholders as actual cash.