Answer:
B. The zero based budget requires managers to re-justify every planned expenditure every year.
Explanation:
A zero based budget is one that does not take into account historical data when it is considering the present year budget. Each departmental requirement is re-evaluated and a new amount is assigned as budget for the year.
However conventional budgets carryover the previous year's expenses as a base data point. This results in similar budgeting across years.
So the main difference between the two is that zero based budget requires managers to re-justify every planned expenditure every year.
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Answer:
Craig Manufacturing Company operates its three production departments within a single facility. Each department produces its own products and maintains its own production equipment. Although they share a common facility, each department is overseen by a separate supervisor. Which one of the following costs is a direct cost of each department?
Production supervisor salary
Explanation:
Production supervisor salary serves as the overhead cost that is attribute to the production in the manufacturing company, it is direct cost for each department since every department has a supervisor