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.This is an example of a(n)_____________ budget approach.
A) expense
B) profit
C) operating profit
D) cash flow
E) revenue

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