What Is Being Described Here? a Situation in Which Managers

question 6

Multiple Choice

What is being described here? A situation in which managers of business units are given agreed budgets and targets, having freedom to manage provided they submit regular reports, meet agreed targets and comply with budgetary expectations.

• A) High formality
• B) Low formality
• C) Differentiation
• D) Decentralisation

---

Definitions:

Master Budget

A comprehensive financial planning document that includes all of the subsidiary budgets within an organization, projecting its financial activities for the period.

Raw Materials Production Needs

The quantity and type of raw materials required to meet production schedules for finished goods.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end consumer.

Raw Materials Cost

The expense associated with the raw materials consumed in producing a finished product.