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A fixed amount of money for anticipated expenditures for specific categories defines which type of budgeting?Choose only one.

a. Zero-based
b. Variable
c. Performance
d. Lump-sum
e. Line-item

User Jsgoupil
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1 Answer

7 votes

Final answer:

Line-item budgeting is the method where a fixed sum is allocated to each category beforehand, providing clear definitions and control over department or category expenditures.

Step-by-step explanation:

A fixed amount of money for anticipated expenditures for specific categories defines line-item budgeting. This budgeting method involves allocating a fixed sum of money to each line item or category in advance. Unlike variable budgeting, which adjusts based on activity levels, or zero-based budgeting, which starts from zero and justifies all expenses, line-item allocates a specified amount that doesn't vary with performance or output levels. It's a common approach in many organizations where the expenditures for each department or category need clear definition and control.

User Dawoud
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