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Category: Managerial Accounting

link to What is Participative Budgeting?

What is Participative Budgeting?

Participative budgeting, also known as collaborative budgeting or inclusive budgeting, is an approach to budgeting that involves the active involvement and input of individuals or teams throughout...

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link to What is a Responsibility Center?

What is a Responsibility Center?

A responsibility center is a distinct unit, department, or division within an organization that has its own assigned goals, responsibilities, and authority. It is a managerial and accounting concept...

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link to What is Budgetary Slack?

What is Budgetary Slack?

Budgetary slack refers to the deliberate overestimation or underestimation of budgeted amounts by managers or employees for their own benefit or to create a cushion for future performance. It...

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link to What is Incremental Budgeting?

What is Incremental Budgeting?

Incremental budgeting, also known as incrementalism or incremental budgeting process, is a budgeting approach in which the budget for a given period is primarily based on the previous period's budget...

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link to What is the Difference Between Zero-based and Incremental Budgeting?

What is the Difference Between Zero-based and Incremental Budgeting?

Zero-based budgeting (ZBB) and incremental budgeting are two distinct approaches to budgeting, differing in their underlying principles and methodologies. Here's a comparison highlighting the key...

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link to What is Manufacturing Margin?

What is Manufacturing Margin?

Manufacturing margin, also known as gross margin or gross profit margin, is a financial metric that measures the profitability of a company's manufacturing operations. It represents the difference...

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