Budgeting Techniques questions and answers
1. The tech industry is characterized by constant changes and rapid development and high competitivity. Any company operating in this market must have a flexible approach to decision making.
Therefore, the flexible budgeting method is more suitable for a rapidly growing tech company because it helps to distribute dynamically the resources in such a volatile environment.
2. The zero-based budgeting compels the managers to assess their activities and the related costs in line with the contribution to the corporate goal. This approach gives a better insight to priorities and enhances cost-savings.
3. Flexible budgeting takes into account seasonal changes and/or industry-related rapid development. On the other hand, a static budgeting is preferable when the company operates in a more stable market like personal care products.
Therefore, the flexible budgeting method is more suitable for a rapidly growing tech company because it helps to distribute dynamically the resources in such a volatile environment.
2. The zero-based budgeting compels the managers to assess their activities and the related costs in line with the contribution to the corporate goal. This approach gives a better insight to priorities and enhances cost-savings.
3. Flexible budgeting takes into account seasonal changes and/or industry-related rapid development. On the other hand, a static budgeting is preferable when the company operates in a more stable market like personal care products.
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