Budgeting Supports the Planning Process by Encouraging All of the Following

question 104

Multiple Choice

Budgeting supports the planning process by encouraging all of the following activities except:

• A) requiring all organizational units to establish their goals for the upcoming period
• B) increasing the motivation of managers and employees by providing agreed-upon expectations
• C) directing and coordinating operations during the period
• D) improving overall decision making by considering all viewpoints, options, and cost reduction possibilities

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Definitions:

Physical Capital

The stock of equipment and structures that are used to produce goods and services.

Capital Per Worker

The amount of capital (tools, machinery, and equipment) available per employee, affecting the productivity and efficiency of labor.

Output Per Worker

A measure of labor productivity calculated by dividing total output by the number of workers.

GNP

Gross National Product, which is the total value of all goods and services produced by the residents of a country within a specific time period.