COST ACCOUNTING
COST ACCOUNTING STANDARDS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The process of developing formal plans for future activities, which often serve as a basis for evaluating actual performance
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One or more individuals selling products or services for profit
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Detailed explanation-1: -Performance-based budgeting is the allocation of funds based on programmatic results that contribute to organizational goals. For governments, performance-based budgeting uses evidence to maximize the allocation of funds toward programs that work and away from those that don’t.
Detailed explanation-2: -Common processes include communication within executive management, establishing objectives and targets, developing a detailed budget, compilation and revision of budget model, budget committee review, and approval.
Detailed explanation-3: -Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. The process of zero-based budgeting starts from a “zero base, ” and every function within an organization is analyzed for its needs and costs.
Detailed explanation-4: -The Four Main Types of Budgets and Budgeting Methods. There are four common types of budgets that companies use: (1) incremental, (2) activity-based, (3) value proposition, and (4) zero-based.