A Characteristic of a Good Budget Is

question 108

Multiple Choice

A characteristic of a good budget is

• A)that it is easy to understand by top management.
• B)that is encompasses every account in the firm's accounting system.
• C)that management is satisfied that it will provide shareholders with an adequate return on their investment.
• D)that it is easy to understand and communicate to all within the firm.

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Definitions:

Economic Reasons

Factors or considerations related to financial efficacy, efficiency, or impact that influence decisions or actions.

Borders

Geographical boundaries of political entities or legal jurisdictions, such as countries.

Technological Advances

Progressive improvements and innovations in technology that enhance efficiency, productivity, and quality of life.

Dependency on Oil

The reliance on oil as a primary source of energy or economic revenue, which can lead to vulnerabilities if there are fluctuations in oil availability or prices.