Question

The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or services. This is an example of a(n) ________ budget approach.

Answer 1

Answer: Expense budget approach

Explanation: Budgeting is a process of creating an itemized summary of intended expenditure; usually coupled with expected revenue for a particular institution, activity or time-frame. An expense budget approach is one in which managers of a division are given a fixed budget. After all expenses are made and recorded, the managers are then evaluated on the basis of their ability to produce goods or services given the amount of money made available.