In practice,when developing a budget,two extremes used for guidance are ________ and ________.
A) participative budget; zero-base budget
B) strategic budget; long-range budget
C) financial planning budget; strategic budget
D) zero-base budget; activities of current or prior period

Question

Quizplus · Accepted Answer

The two extremes used for guidance when developing a budget are zero-base budget and activities of current or prior period. Zero-base budgeting involves starting the budget from scratch, without basing it on previous or current period activities. On the other hand, activities of current or prior period, also known as incremental budgeting or historical budgeting, involves adjusting the previous period's budget to account for changes in the current period. These two extremes provide a range of options for budgeting, and organizations can choose the one that suits their needs best.

In Practice,when Developing a Budget,two Extremes Used for Guidance Are