What budget approach are you using by applying the compensation rates to employees,factoring in probable merit and seniority increases as well as expected turnover?
A) zero based
B) top-down
C) bottom-up
D) break-even

Question

Quizplus · Accepted Answer

The approach described in the question is a bottom-up budget approach, as it involves analyzing the compensation rates of individual employees and factoring in specific factors such as merit, seniority, and turnover. Zero-based budgeting involves starting from scratch and justifying every expense, top-down budgeting involves setting overall expenditure goals and then dividing them among departments, and break-even analysis involves determining the level of sales required to cover costs. None of these approaches involve the same level of individualized analysis as the bottom-up approach described in the question.

What Budget Approach Are You Using by Applying the Compensation