Answer to Question #201704 in Management for Anathi Tobigunya

Question

Kabelo and Hendrik have to draw up a new budget to accommodate their investment in cryotherapy. The projected sales for use of the new equipment serves as the point of departure for the budgeting process. In addition, they will use the previous year’s actual income and expenditures as a basis. This is known as __________ budgeting.

1 traditional

2 zero-based

3 forecasted

4 annual 

Answer 1

1. Traditional budgeting