21.1.2. Budgeting

Try these first

1. 1.

   What is a budget?

   Hint

   Think about it as a roadmap for financial decisions.

2. 2.

   What is budgeting?

   Hint

   It involves planning how to allocate resources.

3. 3.

   What is the primary purpose of budgeting?

   • A. Sales Projection
   • B. Financial Planning
   • C. Operational Control

   Hint

   Think about what 'budgeting' entails.

4. 4.

   True or False: A flexible budget does not change regardless of activity levels.

   • True
   • False

   Hint

   Remember how flexibility works in budgeting.

5. 5.

   A startup in tech needs to adjust its budget due to unexpected costs. How would zero-based budgeting help them?

   Hint

   Consider how questioning each cost impacts the overall budget.

6. 6.

   Evaluate how a company should adapt its budgeting strategy if it shifts from stable to fast-moving market segments.

   Hint

   Think about the characteristics of both flexible and performance budgeting.