December accounts for 25 percent of a clothing store's annual sales.Thirty percent of December's sales are on the retailer's own credit card.These sales will be paid for by consumers sometimes in January of the following year.These credit sales have a significant impact on the retailer's ________ budget.

Question

Quizplus · Accepted Answer

The credit sales in December will impact the retailer's cash flow in January when consumers pay for their purchases. Therefore, the impact is on the cash flow budget. The other budgets listed (zero-based, incremental, top-down) are not directly affected by credit sales and cash flow timing.

December Accounts for 25 Percent of a Clothing Store's Annual