When a division manager is told to "maximize the revenues from the sales of goods and services produced," this is an example of:
A)an expense budget approach
B)a profit budget approach
C)a cash flow budget approach
D)a capital budget approach
E)a revenue budget approach

Question

Quizplus · Accepted Answer

The statement specifically mentions maximizing revenues, which is a clear indication that the approach being used is a revenue budget approach. This approach focuses on increasing the overall revenue generated by the company through the sale of goods and services, rather than just cutting costs or increasing profits.

When a Division Manager Is Told to "Maximize the Revenues