One Objective of Budgeting Is to Motivate Managers To

question 66

Multiple Choice

One objective of budgeting is to motivate managers to:

• A) Eliminate all variances.
• B) Use resources efficiently.
• C) Lessen the need for communication.
• D) Establish prices for external sales of goods and services.

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Definitions:

Demand Function

A mathematical relationship that represents the quantity of a good or service consumers are willing to purchase at various prices.

Revenue-maximizing Price

The price point at which a business can generate the highest total revenue, considering the impact of price changes on sales quantity.

Football Tickets

Admissions to attend a football game, typically purchased and used to gain entry to a stadium where the game is played.

Demand Function

A mathematical expression that describes the relationship between the quantity demanded of a good and its determining factors, such as price, income, and prices of related goods.