Which of the Following Is a Benefit Derived from Budgeting

question 133

Multiple Choice

Which of the following is a benefit derived from budgeting?

• A)Budgeting focuses management's attention on past performance.
• B)Budgeting avoids needing industry and economic factors in decision making.
• C)Budgeting provides a basis for evaluating performance.
• D)Budgeting avoids the need for incentives to improve employee performance.
• E)Budgeting eliminates the need for coordination across departments.

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Definitions:

Quick Ratio

A financial metric indicating a company's ability to meet short-term obligations with its most liquid assets, providing insight into financial health.

Current Ratio

A financial metric assessing a firm's capability to settle its short-term obligations using its current assets.

State Unemployment

A government-provided insurance program that offers temporary financial assistance to workers who have lost their jobs.

SUTA

This stands for State Unemployment Tax Act, which is a payroll tax that employers must pay to the state to fund its unemployment benefits program.