The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or services.Which of the following budget approaches is being implemented by the organization?
A) Expense budget approach
B) Profit budget approach
C) Operating profit budget approach
D) Cash flow budget approach
E) Revenue budget approach

Question

Quizplus · Accepted Answer

Managers of a division may be given a fixed budget for resources and be evaluated on the amount of goods or services they can produce using those resources. This is a cost or expense budget approach.

The Managers of a Division Are Given a Fixed Budget