An Early Warning Signal for the Potential of an Overdrawn

question 95

Multiple Choice

An early warning signal for the potential of an overdrawn budget is created when:

• A)activity-based costing cannot identify drivers.
• B)a bottom-up budget never makes it up the chain of command.
• C)contingency funds are applied for.
• D)a top-down process moves too quickly down to the functional managers.

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Definitions:

Mild

Describes something that is gentle or not severe in effect or degree.

Contingency Table

A table used in statistics to display the frequency distribution of variables, showing the number of observations for each combination of two categorical variables.

Mutually Exclusive

Two events that cannot both occur at the same time, often referenced in probability and statistics to describe situations where the happening of one event excludes the occurrence of another.

Subcategories

Specific groups or divisions within a larger category, used to further classify items or data.