Mike, a grocery store owner, estimates that his profits in the next month will be $3,000. Based on his expectations, he prepares a budget and assigns $650 to savings, $500 to retirement benefits plan, $1,000 to personal expenses, and decides to spend $850 for the expansion of his grocery store. Which type of budget did Mike use?
A) Imposed Budget
B) Participative budget
C) Rolling Budget
D) Zero-based Budget

Question

Quizplus · Accepted Answer

In zero-based budgeting, inflows of funds are equal to outflows of funds.

Mike, a Grocery Store Owner, Estimates That His Profits in the Next