The Main Way in Which Budgets Provide a Means of Control

question 26

Multiple Choice

The main way in which budgets provide a means of control in an organisation is by allowing:

• A) management to control the budget targets.
• B) senior management to control lower-level managers.
• C) actual performance to be compared against budget targets.
• D) budget targets to be set at maximum performance.

Recognize the composition and characteristics of service markets and their significance.

Understand the diverse types of firms involved in the industrial market.

Grasp the concept of organizational buyers and their criteria for selecting suppliers.

Distinguish between various organizational buyers and their functions.

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Definitions:

Income From Operations

The earnings of a business generated from its regular business operations, excluding revenues and expenses from non-operational activities.

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding costs directly related to product manufacturing or service delivery.

Revenues

The total income earned by a company for selling its goods or services before any costs or expenses are deducted.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overhead, payroll, taxes, and interest payments.