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ollegr [7]
3 years ago
13

What is the primary characteristic that differentials a zero based budget from a conventional budget. A. A zero based budget doe

s not take inflation into account. B. The zero based budget requires managers to re-justify every planned expenditure every year. C. A zero based budget rolls historical data forward. D. A zero based budget uses a fixed volume growth rate.
Business
1 answer:
Oksana_A [137]3 years ago
8 0

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.

You might be interested in
Southeastern Bank organizes its loan operations based on the market served—consumer, small business, or nonprofit organizations.
bezimeni [28]

Answer:

customer group

Explanation:

Customer departmentalization is where the organization’s activities are ready to respond to and interact with specific customers or customer groups.

This organizational form is used when great emphasis is placed on effectively serving different customer types.

If Southeastern Bank organizes its loan operation based on customers group, this will allow Southeastern Bank to better serve borrowers with different needs by offering customized loan arrangements according to the customers preferences.

<u>Advantages of customer departmentalization </u>

  • Encourages concentration on customer needs.
  • Gives customers feeling that they have an understanding supplier (banker).
  • Develops expertness in the customer area.
  • Saves customers’ time.
3 0
3 years ago
Which of the terms or phrases listed below is more associated with financial statements prepared in accordance with U.S. GAAP th
nekit [7.7K]

Answer:

The answer is Accumulated other comprehensive income

Explanation:

The statement of  accumulated other comprehensive income is specific to U.S GAAP.It is known as statement of comprehensive under International Financial Reporting Standards.

The statement records losses and gains that are unrealized.For instance a company whose investment is in shares,would have to  record the investment at fair value, that is the market price at each year end, any gains or losses arising from such valuation,especially if the shares are held for long term, is posted to the accumulated other comprehensive income or statement of comprehensive income.

The reason is that the shares are still held within the business not yet disposed of,hence the gains or losses are not realized and should not be recognized in profit or loss.

4 0
4 years ago
Garrett Company provided the following information:
Shalnov [3]

Answer:

Correct option is C

<u>Overall operating income will decrease by $25,000.</u>

Explanation:

Sales ratio = Sales of product 1 : Sales of product 2 = 200,000:300,000 = 2:3

Sum of sales ratio = 2+3 = 5

Common fixed cost:

Product 1 = 2/5×46,000 = $18,400

Product 2 = 3/5×46,000 = $27,600

Total net operating income = Net operating income of product 1 + Net operating income of product 2 = 46,600+(2,600) = 46,600-2,600 = $44,000

Now, comparing with the total net operating income of both the product ($44,000) with only product 1 ($19,000); overall operating income decreases by $25,000 (44,000-19,000)

8 0
3 years ago
The demand function is given by
Jlenok [28]

Answer:

Q=120−4P

Explanation:

putting P = 20 we get

q= 40

we know that elasticity is quantity demanded / price  

20

40

​  

=2

hence the correct option: D

5 0
3 years ago
3. An investor shorts 100 shares when the share price is $20 and closes out the position six months later when the share price i
solniwko [45]

Answer:

$160

Explanation:

Calculation to determine How much does the investor gain or lose

Investor gain =[($20-$18.2)*100 Shares]- ($0.2*100 shares)

Investor gain=($1.8*100 shares)-($0.2*100 shares)

Investor gain=$180-$20

Investor gain=$160

Therefore The amount that the investor gain is $160

7 0
3 years ago
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