Help, Inc., a not-for-profit entity dedicated to providing assistance to the needy, has submitted to its governing body a budget that includes the following budgeted expenditures. Which of the following best describes the budgeting practices of this entity?
A)The entity uses program budgeting techniques.
B)The entity uses object classification budgeting techniques.
C)The entity uses zero-base budgeting techniques.
D)The entity uses priority-based budgeting techniques.

Question

Help, Inc., a not-for-profit entity dedicated to providing assistance to the needy, has submitted to its governing body a budget that includes the following budgeted expenditures.  Which of the following best describes the budgeting practices of this entity?
A)The entity uses program budgeting techniques. 
B)The entity uses object classification budgeting techniques. 
C)The entity uses zero-base budgeting techniques. 
D)The entity uses priority-based budgeting techniques.

Quizplus · Accepted Answer

The fact that the budget includes specific programs suggests that the entity uses program budgeting techniques. This type of budgeting typically involves identifying and budgeting for specific programs, rather than simply categorizing expenses by object or function.

Help, Inc, a Not-For-Profit Entity Dedicated to Providing Assistance to the the Needy