A Budget That States How Managers Intend to Use Organizational

question 37

Multiple Choice

A budget that states how managers intend to use organizational resources to achieve organizational goals is known as:

• A)functional budget
• B)capital budget
• C)master budget
• D)financial budget
• E)operating budget

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Definitions:

Contribution Margin

The amount by which product sales revenue exceeds variable costs, showing how much contributes to covering fixed costs and generating profit.

Fixed Costs

Business expenses that do not change regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Income

The amount of revenue that remains after deducting the costs, expenses, and taxes related to earning that revenue.