Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 17

For the following questions, circle the best response.

Zero-based budgeting

a. drops one period (i.e., week, month, or quarter) and adds another at the end of each successive period.

b. presents a statement of expectations for a period of time but does not present a firm commitment.

c. presents a plan for a range of activity so that the plan can be adjusted to the actual activity level.

d. classifies budget requests by activity and estimates the benefits arising from each activity.

e. None of the above.