Budgets Are

question 105

Multiple Choice

Budgets are:

• A) future oriented.
• B) for managers only.
• C) required by GAAP.
• D) typically not used by small business.

---

Definitions:

Cost Center

A business division that incurs costs but directly does not generate revenues, its performance being measured through cost control.

Level of Management

The different stages or tiers in an organization's hierarchy, each with specific responsibilities, ranging from top executives to middle managers to front-line supervisors.

Responsibility Accounting

The process of measuring and reporting operating data by areas of responsibility.

Responsibility Centers

Responsibility centers refer to distinct segments or areas within a company for which individual managers are accountable for revenue, costs, or investments.