Question

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. expenseB. profitC. cash flowD. revenue

Answer 1

Answer:

The correct answer is letter "A": expense.

Explanation:

The expense budget approach aims to limit the company's operations cost as much as possible and to avoid overspending. Managers must come up with a meticulous plan and after its analysis, they will be able to handle the expenses with the help of tax strategies and the firm's cash flow.