Which Budgeting Method Is Reflected by Establishment of Prioritization at the Start

question 2

Multiple Choice

Which budgeting method is reflected by establishment of prioritization at the start of each fiscal year?

• A)Zero based
• B)Performance
• C)Incremental
• D)Flat percentage

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Definitions:

Internal Reports

Financial or operational reports intended for use within an organization, not for external stakeholders.

Decision-Making Process

A series of steps followed by an individual or an organization to identify and evaluate options to make a choice.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Revenues

The gross increase in owner’s equity resulting from business activities entered into for the purpose of earning income.