Which of the Following Is an Advantage of Budgeting

question 21

Multiple Choice

Which of the following is an advantage of budgeting?

• A) Forces managers to plan.
• B) Provides information useful for control.
• C) Provides information for improved decision making.
• D) Improves communication.
• E) All of these.

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Definitions:

Producer Price Index

An economic indicator representing the average change over time in the selling prices received by domestic producers for their output.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to track changes in living costs.

Consumer Price Index

A measure that determines the average movement over time in the pricing urban shoppers pay for a selected assortment of consumer goods and services.

Producer Price Index

A gauge of economic health that records the mean shift over periods in the sale prices domestic producers earn from their output.