Question
Which of the following statements is correct concerning budget preparation? A. The rolling budget approach is often used in practice because it requires that management
Which of the following statements is correct concerning budget preparation?
A.
The rolling budget approach is often used in practice because it requires that management be in perpetual budgeting mode.
B.
The preparation of the sales budget is the starting point in the budgeting process for all companies.
C.
If a participative approach is used to prepare budgets, only top level managers are involved in the budgeting process.
D.
If a zero-based budgeting approach is used, the annual budgeting process begins with a review of the results of the prior operating period.
E.
Participative budgeting decreases the risk that employees will create budgetary slack.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started