"Why is the ________ budget for next year 35 percent higher than this year's actual expenses?" asked Alli Truelove, CEO of PremierHealth Group. Her CFO, Blake Barnstone, replied, "We need to hire two additional human resources professionals to oversee the new benefits program and an additional attorney to handle claims. Also, our new lease for Building 13 will go into effect, and that includes a 14 percent increase in the first year." Alli replied, "Ouch. It's tough to absorb those kinds of increases from parts of our organization that generate no revenue."
A)cash
B)cost
C)production
D)master
E)maintenance

Question

Quizplus · Accepted Answer

The CEO is asking about the budget, and the CFO explains that the increase in expenses is due to adding new personnel and paying for a higher lease cost. These are all costs, so the best choice is "cost."

"Why Is the ________ Budget for Next Year 35 Percent