COST ACCOUNTING
FLEXIBLE BUDGETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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this type of budget is less complicated that other types of budgets
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sticking to a zero-based budget requires less discipline
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zero-based budget allows less money for wants
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the zero-based budget ensures that every dollar you make is assigned a specific purpose.
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Detailed explanation-1: -A zero-based budget allows less money for wants. Sticking to a zero-based budget requires less discipline. The zero-based budget ensures that every dollar you make is assigned a specific purpose. The zero-based budget ensures that every dollar you make is assigned a specific purpose.
Detailed explanation-2: -As an accounting practice, zero-based budgeting offers a number of advantages including focused operations, lower costs, budget flexibility, and strategic execution. When managers think about how each dollar is spent, the highest revenue-generating operations come into greater focus.
Detailed explanation-3: -The aim of a zero-based budget is to make sure that your income, minus all your overheads, equals zero (income – expenses = zero). This method of budgeting allows you to easily adapt your budget each month if your expenses change.
Detailed explanation-4: -Zero-based budgeting (ZBB) is a budgeting technique in which all expenses must be justified for a new period or year starting from zero, versus starting with the previous budget and adjusting it as needed.