A Key Principle for the Beyond Budgeting Approach Is

question 69

Multiple Choice

A key principle for the Beyond Budgeting approach is:

• A) A command and control approach to planning
• B) Replacing annual planning with rolling forecasts
• C) Restrict access to "need to know"
• D) Rewards based on meeting targets

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Definitions:

Sunk Cost

A cost that has already been incurred and cannot be recovered, and thus should not impact future business decisions.

Gross Margin

The difference between sales revenue and the cost of goods sold, usually expressed as a percentage of sales revenue.

Net Operating Income

Income generated from regular business operations, excluding deductions for interest and taxes.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including costs related to factory equipment maintenance, factory management salaries, and utilities.