When a division manager is given an operating budget of $2.2 million for the coming year and is evaluated on the basis of the amount of goods that can be produced within that budget, this is called:
A)an expense budget approach
B)a capital budget approach
C)a cash flow budget approach
D)a profit budget approach
E)a revenue budget approach

Question

Quizplus · Accepted Answer

An expense budget approach focuses on controlling costs and expenditures, which aligns with evaluating a manager based on the amount of goods produced within a set budget.

When a Division Manager Is Given an Operating Budget of $2.2