Microsoft
MB6-893 · Question #62
The finance department of a company is analyzing which budgeting methodology it wants to use for the next fiscal year. The department has narrowed the options down to historical budgeting and…
The correct answer is C. helps to identify opportunities for outsourcing. See the full explanation below for the reasoning.
Question
The finance department of a company is analyzing which budgeting methodology it wants to use for the next fiscal year. The department has narrowed the options down to historical budgeting and zero-based budgeting. Which advantage does a historical budgeting methodology provide over a zero-based budgeting methodology?
Options
- Aeliminates inflated budgets since performance determines the next budget
- Bstabilizes budget and offers gradual change
- Chelps to identify opportunities for outsourcing
- Ddrives managers to find cost-effective ways to improve operations
How the community answered
(48 responses)- A15% (7)
- B8% (4)
- C73% (35)
- D4% (2)
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