ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The amount of income received before the cost of goods and taxes
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The allocation of monetary funds based on a determined structure
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The amount of income after cost of goods and taxes are deducted
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Assets minus liabilities
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Detailed explanation-1: -Bottom-up budgeting is a budgeting method that starts at the department level, moving up to the top level. Each department within the organization is required to compile a list of the things it needs, the projects it plans to carry out in the next financial period, and cost estimates.
Detailed explanation-2: -Master budget A master budget is an aggregation of lower-level budgets created by the different functional areas in an organization. It uses inputs from financial statements, the cash forecast, and the financial plan. Management teams use master budgets to plan the activities they need to achieve their business goals.
Detailed explanation-3: -The three types of annual Government budgets based on estimates are Surplus Budget, Balanced Budget, and Deficit Budget.
Detailed explanation-4: -Zero-based budgeting starts from scratch, analyzing each granular need of the company, instead of incremental budgeting increases found in traditional budgeting, Essentially, this allows for a strategic, top-down approach to analyze the performance of a given project.