A Principal Difference Between Operational Budgeting and Capital Budgeting Is

question 55

Multiple Choice

A principal difference between operational budgeting and capital budgeting is the time frame of the budget.Because of this difference, capital budgeting:

• A)is an activity that involves only the financial staff.
• B)is done on a rolling budget period basis.
• C)focuses on the present value of cash flows from investments.
• D)is concerned with a long-term net income forecast.

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Definitions:

Collective Bargaining

The process by which workers, through their unions, negotiate contracts with their employers to determine their terms of employment.

Economic Disruptions

Events or activities that cause significant changes or interruptions to the normal flow of economic activity.

Taft-Hartley Act

A 1947 federal law in the United States that restricts the activities and power of labor unions.

National Labor Relations

Refers to the field of law and policy concerning how labor unions and employers interact in the United States, significantly shaped by the National Labor Relations Act (NLRA) of 1935.