Which of the following is the limitation of Zero based budgeting.
I)Resist new ideas
II)Control on expenditure
III)Requires proper training
IV)Conflicts

Related MCQs

• Regal Industries is replacing a grinder purchased 5 years ago for $15,000 with a new one costing $25,000 cash. The original grinder is being depreciated on a straight-line basis over 15 years to a zero-salvage value. Regal will sell this old equipment to a third party for $6,000 cash. The new equipment will be depreciated on a straight-line basis over 10 years to a zero-salvage value. Assuming a 40% marginal tax rate, Regal’s net cash investment at the time of purchase if the old grinder is sold and the new one purchased is
• The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased for $90000; it will cost $6000 to transport to Moore’s plant and $9,000 to install. It is estimated that the machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its 10-year life, the machine is expected to produce 2,000 units per year, each with a selling price of $500 and combined material and labour costs of $450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. Moore has a marginal tax rate of 40%. What is the net cash flow for the tenth year of the project that Moore Corporation should use in a capital budgeting analysis?
• Which of the following is not the limitation of Management Accounting? I)Developing Stage II)Resistance from Staff III)Lack of wide knowledge IV)Decision Making
• Which is not the limitation of financial analysis? I)Effect of personal Bias II)Identify Trend III)Judge Efficiency IV)Different accounting policies
• Which of the following statements are not true about budget, budgeting & budgetary control?
• A budgeting process which demands each manager to justify his entire budget in detail from beginning is
• Which is the mostly likely purpose of budgeting?
• A budgeting process which demands each manager to justify his entire budget in detail from beginning is
• What is included in scope of management accounting? I)Internal Control II)Budgeting III)Reporting to management IV)Office Services
• The process of budgeting helps in the control of