TOP-DOWN BUDGETING Definition

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TOP-DOWN BUDGETING is where budgets are created by starting from the highest level working towards the bottom using parametric relationships. A monetary value is placed on an individual unit (product, service, materials, and labor hour). An estimate of the number of units required is then converted to currency by multiplying the quantity of units by the unit price.

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POSTULATE, in logic, is a proposition that is accepted as true in order to provide a basis for logical reasoning.

PURCHASE MONEY INTEREST is that interest associated with the purchase money mortgage.

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