Each Fiscal Year, Dwayne Is Allocated an Operating Budget and Then

question 53

Multiple Choice

Each fiscal year, Dwayne is allocated an operating budget and then evaluated based on the amount of goods produced by his organization. Dwayne's performance is evaluated on a(n) ________ budget approach.

• A)revenue
• B)cash flow
• C)expense
• D)profit
• E)capital

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Definitions:

Production

The process of creating goods and services, involving both the conversion of raw materials into finished products and the creation of value.

Year Ended

The conclusion of a 12-month accounting period, at which financial statements are prepared to summarize the year's transactions.

Direct Materials Used

The cost of raw materials that are directly involved in the production of goods.

Raw Materials

The basic materials and components required at the start of the production process to manufacture goods.