For Better Management Acceptance the Flow of Input Data for Budgeting

question 205

Multiple Choice

For better management acceptance the flow of input data for budgeting should begin with the

• A) accounting department.
• B) top management.
• C) lower levels of management.
• D) budget committee.

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Definitions:

Scenario Analysis

An approach to study what might happen in the future by looking at various potential outcomes or situations.

Sensitivity Analysis

A process used for exploring how alterations in an independent variable impact a chosen dependent variable, given a set of initial assumptions.

Base Case Values

Refers to the initial set of assumptions, inputs, and data used in financial models to project future outcomes under a standard scenario.

Scenario Analysis

Scenario Analysis is an analytical method used to examine different possible future events or scenarios and their potential impacts on decision outcomes.